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ZHUHAI COMBINED CYCLE PROJECT: JOHN BROWN ENGINEERING
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MDLIAN 3544
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1. ON 6 DECEMBER CURRIE VISITED ZHUHAI AND PAID SEPARATE CALLS ON VICE MAYOR ZENG DE FENG (RESPONSIBLE FOR SOFT LOANS) AND VICE MAYOR LIN BAO WAN (DIRECTLY RESPONSIBLE FOR THE PROJECT).
2. ZENG WAS FRIENDLY AND RECEPTIVE BUT IT RAPIDLY BECAME CLEAR THAT HE HAD NO DIRECT INVOLVEMENT AS DECISION HAD LONG BEEN TAKEN
TO UTILISE EXPORT CREDITS RATHER THAN LOSE TIME DURING THE POST
TIANANMEN SOFT FINANCE FAMINE.
3. CURRIE THEN OUTLINED UK CONCESSIONARY FINANCE ARRANGEMENTS TO LIN, MAKING CLEAR THAT ANY APPROACH FROM MOFERT WOULD RECEIVE SWIFT AND SYMPATHETIC CONSIDERATION. LIN WAS DISMISSIVE, AND SAID
THAT A CONTRACT WITH GEC/ALSTHOM HAD NOT ONLY BEEN SIGNED BUT
RATIFIED BY THE STATE COUNCIL (DING OF ZHUHAI POWER BUREAU TOLD US THE PREVIOUS WEEK THAT CONTRACT HAD YET TO BE FINALISED).
WHILST HE REALISED THAT UTILISING EXPORT CREDITS MIGHT MEAN A DEGREE OF FINANCIAL LOSS, A CONTRACT MUST BE HONOURED. LIN SAID THAT THE FRENCH TERMS WERE 8.3 PERCENT OVER 12 YEARS. HE WAS AWARE, FROM MCDOWELL'S (JBE) LETTER OF 16 NOVEMBER TO LI ZHI QIANG (GENERAL MANAGER OF ZHUHAI ELECTRICITY AUTHORITY) THAT UK
AID ARRANGEMENTS WERE ADVANTAGEOUS. BUT THAT WAS THAT.
J
4 JARDINE MATHESON ENGINEERING TELL US THAT HALL OF JBE WAS TRYING TO GET IN CONTACT WITH THE MOFERT DELEGATION IN LONDON
LAST WEEK. CURRIE WILL CALL ON GUANGDONG FERT LATER THIS WEEK.
BUT ALTHOUGH IT IT NOT 100 PERCENT CLEAR WHETHER OR NOT A GEC/ALSTHOM CONTRACT HAS BEEN RATIFIED, MATTERS LOOK VERY BLEAK FOR JBE.
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