Danish Industry (DI) will try to convince the politicians that the planned Tibet hearing should not criticise China but just provide information. The Danish export to China, that DI fears is threatened, was on 1.1 billion Danish Kroner (100 million GBP) last year.

Vice-director in Danish Industry, Svend Henriksen, sticks to the critique of the hearing that the parliament (Folketinget) decided on Tuesday. If the hearing is carried through, DI will try to influence the result.

"We have good connections to politicians from all parties and we shall now take advantage of that to ensure that the hearing takes on the right form", says Svend Henriksen and continues:

"We will work at (ensuring) that it will only be a question of gathering information. We are not against politicians getting more information but it is important that the result does not become critique. The government should keep an eye on trade interests, and this can only happen by ensuring dialogue, not confrontation".

STATE-SUPPORTED EXPORT

Four years ago, Danish business interests put an end to a planned Tibet hearing. At that time too, the argument was that the export could be threatened by Danish critique. The export to China was 1.1 billion Danish Kroner by 1994. Parts of the export is supported by DANIDA, and thereby the state, that pays the rent on loans Danish banks give to China when Danish firms want to carry out humanitarian projects or projects promoting the environment in the country.

Last year, Denmark had a trade deficit of 3 billion Kroner (300 million GBP) in China because Danish firms imported goods for above 4.1 billion Kroner from China. It concerned mainly clothing, toys, cutlery and other low-technology products.

One of the firms following the discussion about the hearing closely is F. L. Smidth, with an annual turnover of 200-300 million Kroner in China. According to Palle Steenbol, who heads the company's sales office in China, Chinese orders to F. L. Smidth decreased when the shooting of students on Tiananmen Square lead to strong Danish critique, and DANIDA at the same time stopped its aid to China.

"What happens is that our state trading partners get orders to stop trade with us and refrain from handing in new orders. This will never be the official reason and therefore it is impossible for us to calculate the loss precisely. But no company engaged in China is in any doubt that the political conditions affect trade", says Palle Steenbol.

Fowarded by: anders.hoejmark.andersen@anthro.ku.dk