Ningbo Steelworks
[Defensive]
We cannot provide an aid grant to support this very large project. [If pressed
ressed 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 £250m. 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.
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