TNAG-0947-FCO40-1166-Oil-developments-in-and-around-Hong-Kong-1980 — Page 98

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5

All this was pretty broad bush stuff but I drew the following

conclusions:-

(a) the Chinese do not expect oil to flow from the

South China Sea in commercial quantities before 1985;

(b) the Chinese could be interested in cooperation with Hong Kong in downstream development but in terms of Hong Kong investment in Guangdong province;

(c) the Chinese recognise that the oil supply bases which

they will wish to construct in Guangdong and neighbouring south sea coastal provinces will be inadequate without reliable back up repair and maintenance facilities of the type which Hong Kong could provide.

The Hon D G Jeaffreson JP Secretary for Economic Services Government Secretariat

Cc:

T Mound, Peking

C Priston, CRE4, DOT RD Clift, HKGD, FCO✔

C B Benjamin, PEP Div, DoT

D M March

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