TNAG-1434-FCO40-1917-Hong-Kong-leading-personality-Sir-Yue-Kong-Pao--businessman-1986 — Page 326

HK3 AGQ

ΧΙ

RESTRICTED

SIR Y K PAO'S CHEVENING WEEKEND, 15-16 MARCH 1986

NINGBO STEEL PROJECT

Points to Make

1.

Glad that Davy Consortium have submitted

submitted preliminary

feasibility report to Chinese authorities. Hope Chinese

will soon give approval for full study to go ahead.

2.

Present Chinese view of project?

3.

(Defensive).

Enormous scale of project means that only

part of it, at most, could be financed under UK soft loan

facility, but HMG prepared to consider this.