CONFIDENTIAL
was attended by the Chinese Ambassador, Mr Ji Chaozhu, and Sir Y K Pao's representatives in London, Mr William Lee and Mr Stephen Pan. Following Sir Y K Pao's call on Mr Patten on 15 October it has been agreed that Mr William Lee, who will also be the Foundation's representative in London, shold be appointed Honorary Secretary to the Commission which supervises the Scheme.
G.
ARMILLA PATROL PROTECTION FOR HONG KONG SHIPS
9. The DTP advise the MOD on which ships, in addition to British-registered ones, are considered to have a clear majority British ownership and are thus eligible under present rules for protection. The Hong Kong Shipowners Association have asked whether in the case of the "World Truth" which will shortly arrive in the Gulf, an affidavit sworn by the majority owner, Sir Y K Pao, could be accepted by the DTp as sufficient evidence of the ship's eligibility for full RN protection. We have advised DTp that we consider that accepting a sworn affidavit, however distinguished the swearer, would set a dangerous precedent. This response has been conveyed to Sir Y K through various channels.
H.
NINGBO STEELWORKS
10. Sir Y K Pao is promoting this project (estimated cost £1 billion). He was told in 1986 by the Prime Minister and other Ministers that we cannot provide ATP (the minimum grant allowed under OECD consensus rules would be about £300m). The Embassy told the Chinese this in January, but said that we might consider funding a small separate project in the region if it could be done without breaching international obligations. There has been no response.
CONFIDENTIAL
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