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SIR Y K PAO'S CALL ON THE PRIME MINISTER, 21 MARCH

NINGBO STEEL PROJECT

Points to Make

1. Glad that Davy Consortium have submitted preliminary feasibility report to Chinese authorities. Hope Chinese will soon give approval for full study to go ahead.

2.

3.

Present Chinese view of project?

Enormous scale of project means that only part of it, at most, could be financed under UK soft loan facility; but HMG prepared to consider this.

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