TNAG-1464-FCO40-1991-Visits-by-Chinese-officials-to-the-UK--including-visit-by-Hu-1986 — Page 68

CONFIDENTIAL

ANNEX III

POSSIBLE FUTURE CONTRACTS

extension of a coal fired power station at Yueyang in Hunan

Province (Hu Yaobang's home province). (UK content up to £200m; lead companies Balfour Beatty and NEI);

modernization of a seamless tube steel mill (UK content £33m;

Davy McKee/Desford Tubes. China wishes to double its steel capacity by year 2000);

digital transmission equipment in Shanghai (UK content £25m;

STC);

Luoyang tractor factory (UK content £12m, Lucas CAV).

In addition, and without drawing on the £300m package, we have

offered the Chinese favourable financial terms to purchase two

specialised container ships, worth £44m, from British Shipbuilders.

Other major specific prospects are in:

steel. Davy McKee are leading a consortium conducting a

feasibility study for an integrated steelworks at Ningbo (possible

UK content £l bn). Sir Y K Pao, a native of Ningbo, has been

promoting British involvement; aluminium. Wimpey are participating in a feasibility study on aluminium shelter at Pingguo, Guangxi province. (Possible UK content £150m).

civil aircraft. BAe and Short Brothers are hoping to follow up

their recent successes with further sales. Westland have been

bidding to sell 17 W30 helicopters for tourism.

coal mining. The NCB provided in 1985 a free feasibility study for the development of the Tangshan coalfield, on the possibility of

subsequent orders of up to £100m for British coal mining equipment.

The Chinese have not yet responded.

CONFIDENTIAL