of there being outstanding commercial

differences, we both concluded that the

final round was bound to be in Beijing. Earlier stages thus had to be "sustaining

goodwill", but retaining enough for the

final round. It was also recognised that

there could well be more than one "final

round", and conceivably there could be

merit in demanding that this be done jointly.

(b) Aim to "string out" financial conces- sions in parallel with the development of

commercial negotiations for one side or the other to reach the finishing post

prematurely would simply have put heat on

the other.

(c) Coping with the Chinese "double-bind"

always pleading "We wish a mutually satis- factory conclusion" whilst offering no concession themselves, would require very

careful staging of concessions between us

and the French, so that each side in turn

could offer some nugget without accelerating the concessionary pace.

(a) As the largest Joint Venture in

Chinese history, and the highly political

quality of the project, conditions were

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