TNAG-2362-FCO40-3433-Visit-by-John-Major--UK-Prime-Minister--to-Hong-Kong--Septem-1991 — Page 28

aef.lw/jamie/2.4.10.91

HM Treasury

Jamie Mortimer

Under Secretary

ET MON

нно 826/13

Malcolm Stephens CB

Chief Executive

ECGD

PO Box 2200

2 Exchange Tower

LONDON E14 9GS

6/13

OV 9

Parliament Street London SWIP 3AG Telephone 071-270 4479

158

AT 7410

M. Riebeats : AND C. The James: FED

9/10 Mr Store

Rx3

1/

4 October 1991

Harbour Exchange Square

Re Norris & pe

Walter water. He fridge

Dear Malcolm,

BRIEFING FOR PM'S VISIT TO CHINA AND HONG KONG

Thank you for your letter of 25 September. I am also grateful to Christian Adams for his letter to me of 23 September.

The comments in the briefing for the PM's visit to China and Hong Kong to which I took exception in my letter of

10 September are:

"

•

the PM could

valuably confirm to Lord Kadoorie and Sir William Stones.. that ECGD are keen to support the project [the Black Point power station].

•

I have to say that I remain of the view that the Prime Minister should not have been advised to say this. It seems to me that the words carry a clear implication that cover for the project would be available, and this has not been agreed. Assuming the project would mean an increase in exposure of more than £200 million, EGC approval for it would be required, should not be taken for granted.

and this

I appreciate that the form of words that the Prime Minister was advised to use refers explicitly to ECGD and not the Government, but I think it is fair to say that, if the Prime Minister had spoken as he was advised, the listener would have assumed he was representing a Government position.

I agree that the section in the brief under the sub-heading "ECGD cover" contains very fair remarks about the hoops that would need to be gone through before cover could be agreed. am not objecting to what this section says.

I

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