CONFIDENTIAL #B

Annex III

Orientation for foreign investment in China.

List of projects which are given priority :

1.

2.

Offshore oil exploration and development.

Exploration and development of onshore and natural gas in ten southern provinces (Jiangsu, Zhejiang, Anhui, Fujian, Hunan, Jiangxi, Yunnan, Guizhou, Guangxi and Guangdong).

3. Development of export-oriented coal mines.

4.

5.

6.

7.

8.

9.

Liquification and gasification of coal and the

transportation of gas.

Development of non-ferrous mines such as manganese

and copper.

Smelting and rolling of metals such as pig iron, rolled steel, aluminium, copper, lead and zinc.

Production of export refractory materials and their

products and carbon black products.

Production techniques for single crystal silicon.

Production of compound fertilizers.

10. Production of chemicals such as phosphates and

sulfates.

G.F. 326

CONFIDENTIAL # &

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