TNAG-1594-FCO40-2179-Honk-Kong-leading-personality-Sir-Yue-Kong-Pao--businessman-1987 — Page 60

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

Ningbo Steelworks

[Defensive]

We cannot provide an aid grant to support this very large project. [If pressed

ressed we have indicated to the Chinese Government that we are willing to explore other ways of expressing our support on small scale. No response

yet.

Background

Sir Y K Pao, who comes from Ningbo, 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 concensus rules would be about £250m. 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.

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