HK3 AGQ

RESTRICTED

SIR Y K PAO'S CHEVENING WEEKEND, 15-16 MARCH 1986

ΧΙ NINGBO STEEL PROJECT

Points to Make

1.

Glad that Davy Consortium have submitted prelimina ry

feasibility

to report

Chinese authorities.

Hope

will soon give approval for full study to go ahead.

Chinese

2.

Present Chinese view of project?

(Defensive).

3.

Enormou s 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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