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<title>NEW CANADIAN BUSINESS DEALS ADVANCE CANADA'SPARTNERSHIP WITH SHANGHAI</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">April 2, 1998 No. 79</font></p>
<p align="CENTER"><font face="Univers" size="+2">NEW CANADIAN BUSINESS DEALS ADVANCE CANADA'S</font></p>
<p align="CENTER"><font face="Univers" size="+2">PARTNERSHIP WITH SHANGHAI</font></p>
<p><font face="Courier"></font><font face="Courier">International Trade Minister Sergio Marchi marked the 90th anniversary of
Canada's trade presence in Shanghai with three new business deals valued at over
$480 million. The Minister and his Canadian business delegation are on the fourth
day of a nine-day trip to China and Hong Kong.</font></p>
<p><font face="Courier">"This visit brings new momentum to Canada's long history of doing business in
Shanghai, where opportunities for Canadian firms are growing at an exponential
rate," said Mr. Marchi. "The new business deals signed today profile Canadian
value-added expertise, particularly in Canada's aerospace industry, and benefit
both the Canadian and Chinese economies. Canadian companies here are making the
kind of contacts that are very beneficial to business development in this
region."</font></p>
<p><font face="Courier">These business initiatives involve construction and the aerospace industry,
specifically, aircraft, avionics and radar systems. Also at today's signings,
the law firm of Bull, Housser & Tupper announced the opening of a new law office
in Shanghai.</font></p>
<p><font face="Courier">On April 1, 1998, Minister Marchi led members of the business delegation on a
visit to Shanghai's Canadian-designed stock exchange and met with the Mayor of
Shanghai, and the Vice-Governor of the Shanghai Branch of the People's Bank of
China. Today, Mr. Marchi participated with Canadian company representatives at
numerous business meetings.</font></p>
<p><font face="Courier">China is Canada's third-largest trading partner, with Shanghai accounting for 25
percent of two-way trade between the two countries. Minister Marchi leaves today
for Hong Kong, the third and final leg of his trade mission.</font></p>
<p><font face="Courier">- 30 -</font></p>
<p><font face="Courier">A backgrounder on the business deals is attached.</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Leslie Swartman</font></p>
<p><font face="Courier">Office of the Minister for International Trade</font></p>
<p><font face="Courier">(613) 992-7332</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
<p><font face="Courier">This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca</font></p>
<p align="CENTER"><font face="Univers" size="+1">SHANGHAI BUSINESS INITIATIVES</font></p>
<p><font face="Courier"></font><font face="Courier"><strong>Canadian Aerospace Group (CAG), Burlington, Ontario</strong></font></p>
<p><font face="Courier">Canadian Aerospace Group has signed a major contract with Jiangxi Hongdu Aviation
Industry Group to co-produce and market agricultural aircraft for worldwide
sales. Under the agreement, Hongdu will produce under licence, CAG's Windeagle,
Monitor, and Timberwolf aircrafts. In Canada, CAG will add state-of-the-art
composites such as engines, avionics, and electronics and be responsible for
international marketing. This deal marks the first time aircraft built in China
will be certified by the U.S. Federal Aviation Authority. The two companies also
signed an agreement for the completion and sale of the Hongdu line of
motorcycles, a product in growing demand in China. The total value of this deal
is an estimated $300 million, with Canadian content amounting to 50 percent or
$150 million.</font></p>
<p><font face="Courier"><strong>Easy Field Consultants (Canada) Limited, Markham, Ontario</strong></font></p>
<p><font face="Courier">Easy Field Consultants (Canada) Limited has signed an agreement with Shanghai
Nanshi Residence Construction Company (SNSRS) to build new, affordable housing in
the Nanshi region of Shanghai. Using Canadian technology, this project combines
construction materials from both Canadian and Chinese sources. When completed,
this $168 million project is expected to generate $50 million in Canadian
exports.</font></p>
<p><font face="Courier"><strong>Raytheon Canada Limited, Waterloo, Ontario</strong></font></p>
<p><font face="Courier">Raytheon Canada Limited has signed two contracts with the Civil Aviation
Administration of China to supply radar systems for air traffic control at
Shanghai and Hangzhou airports. The two contracts are valued at a total of over
$12 million. As an established worldwide supplier of air traffic control radar
systems, Raytheon has been doing business in China since 1994. Over half of the
value of this deal is Canadian content.</font></p>
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