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electrification or ports.

8.

Over the past year since the Kong Xun delegation returned to

China the various parties have kept in touch with each other eg

during the visit to China by a UK business delegation under the

leadership of Lord Nelson (Chairman of GEC and the then President of

the Sino-British Trade Council) in November 1982 and a visit by a

BLMA delegation to China in April 1983, but there has been little tangible progress and we remain uncertain how much priority the

Chinese attach to this project in comparison with say coal projects

elsewhere in China. There have also been reports that the Chinese

are considering building a slurry pipeline rather than a railway (although there are technical problems in pipelines of such a

length) or even that instead of exporting the coal they would use to

generate electricity locally and to promote economic development in the region.

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