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4B
004006 MDHIAN 8229
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FM PEKING
TO IMMEDIATE FCO
TELNO 1624
OF 230748Z DECEMBER 93
HKB 180k
TOP COPY
Q DIST?
1994
? Mr Whitneys files
INFO IMMEDIATE HONG KONG, BTC HONG KONG
INFO IMMEDIATE JLG HONG KONG, DTI, ECGD INFO PRIORITY WASHINGTON, BONN, PARIS, SINGAPORE INFO PRIORITY UKREP BRUSSELS, JAKARTA, BTCO TAIPEI
یام
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CORRECTED VERSION ADDITIONAL ADDRESEE
YOUR TELNO 303 TO UKREP BRUSSELS: CHINESE THREATS TO BRITISH COMMERCIAL INTERESTS
Shandong Power Project
1. We have no knowledge of any British interest in power projects in Shandong. The reference at para 4 of TUR may/may be to a report carried in Hong Kong's Sunday Morning Post of 19 December. This tells of the "collapse" of a new power plant deal in Shandong resulting from a withdrawal by the Shandong Power Bureau. there is no British connection; the proposed joint venture partners are reported to be "US giant GE Capital" and "US merchant bank Goldman Sachs". "Hong Kong conglomorates" are also said to
be involved.
2. The accompanying editorial and the report itself speculate that the reason for the breakdown is a consequence of general concern about foreign investors "coming in and taking the cream of the joint ventures". If this report is indeed the basis of the item in para 4 of TUR, we should be robust in rebutting any suggestions that the British are involved.
Canton Metro
3. The line to take in para 4 of TUR states that a large number of contracts are still to be awarded for the Canton Metro project, and that British companies are still competing for them. This is misleading. While no actual contracts appear to have been signed yet, a written agreement has been signed with the Germans covering
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