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To: Claude Cormier who wrote (2861)	4/5/2001 11:47:21 PM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hi Claude, I worked for a S. African client six years ago on licensing their biotech gold extraction process on certain of China's poorer grades of gold bearing ore. The effort was not fruitful, as all mines belonged to the state, and all outputs taken off the mines hands at officially dictated low prices (way below then world market price). The monopoly gold corp was simply a large bureaucracy withoutr a purpose. Now, I am being approached by comrades with local clout on jointly buying (yup, these guys have money) small gold mines at around 2x estimated annual earnings. What makes me so lucky? Because they see what I do for my power generation clients' interest against their interest and they see I am not bribe-able, at least not by amounts they are familiar with. Old saying in China “no fighting, no recognition of friendship material”. They also see they have so much to learn about the outside world, about money, how to get it, take care of it, and keep it. Rumors fly about the 'when' and I have learnt that 'when' in China is a moveable feast, ultimately defined by when the 'big boys' feel ready, when they themselves have secured some choice supplies. The big boys do not know precisely when either, because it is a function of when they get what they want. The problem with China, different than other developing countries, is that the very top of the leadership is actually OK, unselfish, etc etc, but unfortunately they are supported by a middle layer of grabbers, but fortunately these in turn are further supported by a layer of entreprunuers. And so the system move to allocate, but the system does move. Unlike Russia. On other reforms (health care insurance, social security insurance, A/B share market merger, etc etc) the “rumor to policy initiative to implementation” can run anywhere from 2 to 6 years. I would judge gold deregulation to be 2-3 years off yet. And no, I will not participate in any gold ventures in China, after three generations of lessons, the Chen clan learns. Chugs, Jay