CONFIDENTIAL

145267 MDADAN 0334

Given their trade surplus with the UK and GATT concerns they could not afford too much overt discrimination. The development of other projects currently under negotiation (eg Balfour Beatty's pursuit of the tunnelling contract for Canton Metro) will give us a chance to assess further whether our companies are being targeted.

MCLEAN

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ADVANCE

3

DISTRIBUTION

3

DTI//VICTORIA ST/JONES/PEP3C

FED //HD

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HKD //HD

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