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agreement in principle to hold talks.
The UK side was waiting
for a response for the Chinese.
6. Mr Murray (DTI OT2/2D) said that although UK exports to
China had risen in 1992, they were still running at a lower level
than in 1990. UK imports from China were more than twice the
level of our exports. The fact of a trade deficit was less
important than increasing exports. (Mr Davies intervened to
point out that there were a number of important exports, notably
aero-engines which did not figure in direct statistics on exports
to China).
7.
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1992 had seen an increase in the level of interest in the
China market. The number of enquiries reaching CBTG and DTI were
running at a much higher level. Mr Needham's contribution to the
current revival of interest was very important. Mr Needham saw
and appreciated the importance of greater China (Guangdong, Hong
Kong, Taiwan). New areas of interest commercialisation,
consumer market, management training are opening up. It was
important for UK companies to realise that there was more than
one China and to emphasise their commitment to the market. The
Hong Kong route into China was important, particularly for South
China. There had been no sign to date of Hong Kong difficulties affecting trade or specific contracts.
8. Mr Davies announced that the setting up of a
Consulate-General in Canton had been approved, but emphasised
that this was not for public consumption.
9. Mr Kipps (DTI/OSO) made the point that onshore oil
exploration was now being opened up to foreign companies.
Mr Eggar was keen to promote China as a market. BP and Shell
were keen and active. CBTG and OSO conducted a successful mission to north-west China in October 1992.
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