TNAG-2785-FCO40-4004-Hong-Kong-UK-Parliamentary-and-other-interest-in-constitutio-1993 — Page 39

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RAJ Bunten

Hong Kong Dept

March

DATE: 26 February 1993

cc: Dr Bristow-Smith, FED

Mr Ricketts

PS/Mr Goodlad

HONG KONG: LETTER FROM MR TIM BOSWELL, MP

1. Mr Tim Boswell, MP has written to Mr Goodlad enclosing a copy of a letter from his constituent Mr Jon Lougee who is concerned with the possible effects of disagreements with the Chinese on the UK's exports to China. I submit a draft reply.

2.

In Mr Lougee's strongly worded letter he says that this company, Flexiframe Ltd, 'are at an advanced stage of negotiations with a major municipality in the PRC for a water treatment works which will be supplied under a twenty year "build, own, operate, and transfer" (BOOT) scheme. The only scheme of this nature of which we and the DTI are aware is for the Welsh Water company to supply a treatment works to Shanghai. Negotiations are at an early stage and it is clear that the Chinese are undecided whether they are content ideologically for a foreign company to own and operate a water treatment works in China. DTI have not heard of Flexiframe's involvement. The BOOT scheme is closer to a foreign investment in China than an export. It is likely that the supplier of the water treatment plant would be expected to contribute funding to the project.

RAJ But

RAJ Bunten