To: elmatador who wrote (56886 ) 12/4/2004 10:57:33 AM From: RealMuLan Respond to of 74559 Whether this airbus deal will go through depends on what is German's attitude on EU ending arms embargo to China, and whether they are willing to sell some high tech weapons. =================== EU embargo stalls Airbus China deal - report By CBS MarketWatch Last Updated: 12/3/2004 12:51:22 AM TOKYO (CBS.MW) - The European Union's arms embargo against China is one factor preventing European airplane manufacturer Airbus from finalizing an order from China for at least five of its new A380 flagship passenger jets with a total price tag of $1.4 billion, according to a published report. The Asian Wall Street Journal quoted John Leahy, Airbus' top plane salesman, as saying the European plane maker had reached a provisional agreement to sell five A380s to an unnamed Asian airline. He expected the deal to close within several months. The paper quoted Lu Xiaosong of China Aviation Supplies Import & Export Group, a spokesman for the Chinese government-controlled company that serves as an agent for airplane imports, as saying Chinese regulators and airlines have reached preliminary agreements to buy an unspecified number of A380s, But Lu said several factors, including the 15-year-old EU embargo on arms sales to China imposed after the Tiananmen massacre in 1989, are standing in the way of finalizing the deal, "It's understandable," said Lu. "Politics and economics can never be separated." China Eastern Airlines, which operates 71 Airbus planes, is interested in buying A380s, an executive with the company said, but declined to specify how many, the newspaper reported. It said both China Southern Airlines and Air China are also potential buyers of A380s. Airbus is 80-percent owned by European defense group EADS (005730005730), and is a main rival of the United States' Boeing (BA). © 1997-2004 MarketWatch.com, Inc. investors.com ================================================ And of course, Beijing denies the connection<G>taipeitimes.com But in any case, we should know the reason in this coming Wen's visit to Europe.