NINGBO STEELWORKS [Defensive]
[If
We cannot provide an aid grant to support this very large project. pressed.] We have indicated to the Chinese Government that we are willing to
explore other ways of expressing our support on small scale. No response yet.
BACKGROUND
Sir Y K Pao, who comes from Ningbo, is promoting this project (estimated cost
£1 billion). He was told in 1986 by the Prime Minister and other Ministers
that we cannot provide ATP (the minimum grant allowed under OECD concensus
rules would be about £300m). The Embassy told the Chinese this in January,
but said that we might consider funding a small separate project in the region
if it could be done without breaching international obligations. There has
been no response.