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To: BigBull who wrote (66674)	5/19/2000 5:34:00 PM
From: ItsAllCyclical	Read Replies (1) \| Respond to of 95453

Interesting and intelligent take on China/inflation. I guess I would tend to agree in the long term, but I would think the effects would take some time to be felt by the market (1-2 years minimum). Markets do not "open" on a dime regardless of what an agreement might say. However, that said I don't think one needs more than 10-15% exposure to gold for it to have an effect on your portfolio if prices/inflation skyrockets. Currently I have about 2.5% in AEM my only gold stock. If I continue to see merit in your and Slider's posts regarding gold I may increase it to 10%, but probably not much more. I'm certainly no gold bug yet. But if I'm going to hold cash anyway and if the gold stocks look like they'll at least hold their ground then I may increase my stake in the gold/basic commodities sector (just in case two smart guys are correct).

To: BigBull who wrote (66674)	5/20/2000 9:56:00 AM
From: Tomas	Respond to of 95453

Oil industry welcomes EU-China deal - Financial Times, May 19 By Matthew Jones The oil industry on Friday generally welcomed news that China will end its state-controlled procurement system for oil imports but the less bullish said the effect will not be seen for some time. The move, which came as part of a bilateral agreement by China and the European Union to remove the last barriers to Chinese entry to the World Trade Organisation, will see Beijing open up 20 per cent of its oil imports to non-state traders. This percentage is set to increase with time following Chinese accession to the WTO. BP Amoco, which is the biggest foreign investor in China through its 20 per cent holding in PetroChina, praised the agreement. It said: "We welcome any development that encourages open markets, so this is very positive news." However, some in the oil industry were less enthusiastic. One senior oil official said: "I am not sure that this will make an awful lot of difference to us - very often the impact of these things isn't seen for a long time." Oil analysts said the agreement presented significant opportunities for Western oil companies. Leo Drollas, deputy director of the Centre for Global Energy studies, said: "Chinese oil imports have been growing very quickly this year and are set to continue to rise by five per cent a year in the foreseeable future." The Paris-based International Energy Agency predicts an even greater rise in Chinese oil imports due to strong economic growth and a failure to come up with a unified energy strategy. In a recent report it warned that oil imports could grow from the current level of around 1.6m barrels a day to around 8m barrels a day by 2020. Up to now China has bought all of its crude oil and oil product imports from the Far East and the Gulf through China National Petroleum Corporation and Sinochem, the two state oil groups. There has also been a thriving trade in smuggled crude and oil products from Hong Kong, although the Chinese government has cracked down on this in recent years.