TNAG-2679-FCO40-3876-British-Trade-Commission--Hong-Kong--and-China-Trade-Unit-re-1993 — Page 142

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BRITISH TRADE COMM

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Our views on mainline railway links are similar. Certainly, if China becomes less centralised, there may

P.02

be possibilities of local or joint venture main line work for foreign contractors, and there will certainly be possibilities for equipment sales particularly in the control and communications sectors. OECF/World Bank funded projects may provide the

best prospects for British companies. Again, this is a South China view: things may seem different from Peking.

Where we in the South would see advantage in investing in studies would be in airports, ports and harbours and above all urban transportation systems. There are similarities between the potential for UK companies in both airports, and harbours. Both, at their simplest, require equipment and associated training. The Chinese are of course quite capable of building runways and quays. Where they plainly fall down is on design, management and support services. These are likely to be major growth areas and it would be sensible for us to invest in studies which may help British firms take matters forward. the case of ports and harbours this is particularly topical since there will be a major sectoral mission to China in the near future.

In

I would however argue that urban transportation is the sector which should be given the highest priority. As Jim Currie has already pointed out, success with the Canton Metro could provide very considerable advantages which could be built upon both in terms of further metro business and in town? transportation systems, their integration, management and planning. As far as metros and light railways are concerned, Richard Parry's suggestion of a survey of identified projects deserves particular attention.

Putting urban railways to one side, it seems to us that a decision will be needed on whether to address the whole of China, or to target regions. We would incline to the latter, but again this is Alan Kerfoot's territory. As to the organisation of studies, it would seem sensible to carry them out in two separate stages. The first would be to conduct an overall survey at either national or regional level. This might be followed by more detailed analyses of requirements at the local level.

Yours ever лает

J Smith-Laittan

C. C.

Mr Alan Kerfoot, Peking Mr Alan Murray, XAAA2, DTI

Ms D Barnes-Jones, HKD, FCO

Mr Lawrence Bristow-Smith FED, FCO

Every effort is made to ensure that the information given herein is accurate, but no legal responsibility is accepted for any errors, omisions or misleading statements in that information caused by negligence or otherwise and no responsibility is accepted in regard to the standing of any firma, companies or

individuals mentioned.

TOTAL P.02.

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