CONFIDENTIAL

Manpower

Expertise from Singapore's Housing Development Board (HDB), Telecoms, National Computer Board, Jurong Town Corporation (JTC), Port of Singapore Authority (PSA) and Civil Aviation Authority of Singapore.

Development and Construction

Advice from Singapore on developing a specially selected area along the lines of Jurong Town.

- Cultural Exchanges

Chinese treasures in

The setting up of a permanent exhibition of Chinese Singapore.

- Oil Refining

4.

In an extension of existing contracts, China confirmed that it would send three million tonnes of crude oil a year for three years to be refined in Singapore. (Comment: this is probably a minimum, give that 3,085,598 tonnes of Chinese crude passed through Singapore's refineries in 1984 and considerably more in 1985). China also undertook to consider further co-operation with Singapore refiners and petrochemical plants and to give priority to the purchase of petrochemical products from Singapore provided the price was competitive.

As a result of follow-up discussions after Mr Lee's visit, contracts were signed early in 1986 between the Chinese Sinochem Corporation and a group of companies: Singapore Petroleum and Singapore's Shell, Mobil and Esso companies. Under these contracts China agreed, starting in January 1986, to send between 80,000 and 85,000 barrels of crude oil a day to Singapore for refining. This figure is above the amount specified in the September agreement - three million tonnes works out at 60,000 barrels a day but is less than the level achieved in 1985 of 110,000 barrels daily. The contracts will provide for the return to China of much of the light end-products, such as jet fuel, naphtha and diesel. The possibility of three-year contracts was not discussed in the negotiations.

Development Projects

5.

The November 1985 visit to Peking by а delegation of the Singapore National Development Ministry focused on co-operation in tourism, civil aviation and town/housing/ industrial estate development. Although the main purpose of the visit was to sign the investment protection and promotion agreement, the National Develop- ment Minister also

also led a team to Nanjing, Shanghai and Xiamen to assess their potential for town, housing or industrial estate development projects. At the same time, Brig Gen Lee led a second group to Guangzhou and Shekou where he opened the Chiwan Petroleum Supply Base, a Sino-Singaporean joint venture.

2

CONFIDENTIAL

/6.

Share This Page