TNAG-1162-FCO40-1442-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Hong-Kong--1982 — Page 37

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5. In answer to questions from the Prime Minister, Mr Downs said he thought that undersea pipe would not be required in great quantities for at least 7 years. Some of the drilling rigs would be made in China, but most would be brought in on contract as there was now a large international surplus of equipment. He hoped that the British offshore service industry would improve on its slow start and obtain a reasonable share of the business. Finally, Mr Downs predicted that not more than a dozen companies would be asked to

iscuss their bids in the first instance as to do more would strain Chinese negotiating capabilities.

G

E Clark

9 September 1982