CONFIDENTIAL # 3

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said that a number of Hong Kong consortia with experience in oil exploration had already been invited by China to give their views and advice on the practicability and technical requirements in setting up such a base.

10.

It was also reported that some of the companies that had completed seismic surveys in their specified areas in the South China Sea had submitted their development proposals to China and that China would be inviting foreign oil companies to tender for offshore drilling rights in a month or so. Again, the Hong Kong Government has no direct knowledge of this.

Economic Services Branch

Government Secretariat

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