TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 42

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MEETING WITH SIR LAWRENCE KADOORIE

NOTE OF A MEETING HELD IN ROOM 11.01 ASHDOWN HOUSE AT 11.30 am on 28 JULY 1980

Present

Secretary of State Sir Lawrence Kadoor

Mr Manzie

Mr Brown

HK K 166

RECEIVED A PESTRY NO. 51

· 6 AUG 1980

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1

DESK OFFICER

INDEX

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12 5/8

The purpose of the meeting was to enable Sir Lawrence to report further to the Secretary of State on progress on the proposed Guangdong Power Station, following his earlier meeting with the Secretary of State on 30 April 1980.

2 Sir Lawrence said that negotiations with the Chinese had progressed rapidly since he last met the Secretary of State. However in the course of the official negotiations Sir Lawrence had been puzzled by the enthusiasm of the Chinese for the capitalist concept of setting up a company in which the China Light and Power Company (CLP) would have a substantial shareholding. To Sir Lawrence this seemed an absurd concept for the Chinese to embrace. He had voiced his doubts first of all to the Chinese at a management meeting discussing the project. The reaction of the Chinese at this meeting had been one of dismay; the Chinese interpreted Siw Lawrence's comments as doubts about the position of the Chinese Government. However, subsequent to the management meeting, Sir Lawrence had been invited by the Chinese to a private meeting with Mr Chen Gang. At this meeting it had become evident that the principal motivation of the Chinese in pursuing the project was to seek to cement the existing relationship between the People's Republic of China and Hong Kong. Sir Lawrence read out the minutes of this private meeting to the Secretary of State and left a copy with him; these are attached at Annex A to this note. Sir Lawrence said that the minutes made plain that the Chinese were anxious for the British to be involved in Chinese economic development in order to encourage the maintenance of the status quo when the lease for the New Territories came up for renewal in 1997.

3 In response, the Secretary of State said that the story Sir Lawrence told was indeed a fascinating one; this was a remarkable example of "ping pong" diplomacy. Sir Lawrence said that he understood the Chinese wanted him to speak to the British Government about the project; he was 50%-70% sure that there was more behind it than the purely economic argument.

4 The Secretary of State asked whether the Foreign Office had been brought into the picture. Sir Lawrence explained that he would be seeing the Lord Privy Seal that afternoon to convey to him the latest position on Guangdong. Sir Lawrence explained that he was really seeking advice on how to handle the information conveyed to him at the private meeting he had had with Mr Chen Gang.

•

/Mr Manzie ...