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were also good for the involvement of British companies in offshore oil exploration in the Yellow Sea, for which Shell and BP had both made bids: tenders had been opened and were now being assessed. In coal exploitation too, agreements of intent had been reached on joint ventures in Shandong Province and Guizhou. The Prime Minister welcomed these agreements of intent and expressed the hope that they would be carried forward to fruition.
Project 051
The Prime Minister referred to the Luda destroyer project, about which she had corresponded with the Chinese Ambassador. Premier Zhao Ziyang said that he knew that the Prime Minister had made efforts to ensure that the negotiations on the Luda destroyer were successful. Success had almost been achieved; there remained a problem about the clause covering fluctuations and costs. He hoped that the Prime Minister could help in finding a way of over- coming this problem. (At this point Premier Zhao Ziyang was handed a telegram indicating that British Aerospace were about to send a delegation to carry negotiations forward.) The Prime Minister said that she hoped that a solution to the problem could be found: Britain wanted to help with this project.
Consulates
The Prime Minister welcomed the agreement between the Governments of the United Kingdom and China to open Consulates in Shanghai and Liverpool. The British Government hoped that it would be possible for the Chinese Government to provide premises which fitted the distinction of the Shanghai Consulate. It would not be satisfactory for the Consulate to be placed in a hotel. The British Government had had a nice Consulate building up to the time. of the Cultural Revolution in 1967 and it would be a happy solution if that could be restored. Premier Zhao Ziyang said that there would be no difficulty in establishing the Consulate in Shanghai as soon as the preparatory work was finished. As regards the site, he regretted that another use had been found for the former Consulate building and it would not be possible to give it back. But compensation would be provided and the Office of
Foreign Affairs in the Shanghai municipality would assist in providing premises.
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