Assignment and Assumption Contract - Jiaozuo Aluminum Mill and Jiaozuo Wan Fang Power Co. Ltd.


                       ASSIGNMENT AND ASSUMPTION CONTRACT


         This ASSIGNMENT AND ASSUMPTION CONTRACT (this 'Contract'),  dated as of
this 26th day of April,  1996, is between JIAOZUO ALUMINUM MILL ('Assignor') and
JIAOZUO WAN FANG POWER COMPANY LIMITED ('Assignee').


                                    RECITALS

         WHEREAS,  Assignor  owns all right,  title and  interest  in and to the
equipment, machinery, properties,  contracts, permits, licenses and other assets
listed on Schedule A attached hereto (the 'Project Assets');

         WHEREAS,  pursuant to the Joint Venture  Contract dated as of March 27,
1996 between  Assignor and Jiaozuo  Power  Partners,  L.P.  (the 'Joint  Venture
Contract'),  Assignor is required to transfer the Project  Assets to Assignee at
the time contributions to the registered capital of Assignee are made;

         WHEREAS,  Assignor desires to assign to Assignee,  and Assignee desires
to accept, all of Assignor's right,  title,  interest and benefits under, in and
to, the Project  Assets and Assignee  desires to assume  certain  liabilities in
connection   therewith   as  listed  on   Schedule   B  attached   hereto   (the
'Liabilities'), all on the terms and conditions set forth herein; and

         WHEREAS, the transfer of the Project Assets under this Contract is made
in consideration of Jiaozuo Power Partners, L.P. entering into the Joint Venture
Contract and in consideration of Assignee's assumption of the Liabilities listed
on Schedule B hereto;

         NOW,  THEREFORE,  the parties  hereto,  intending to be legally  bound,
agree as follows:

         1.  Assignor  hereby  irrevocably  conveys,  transfers,  sets  over and
assigns to Assignee (the 'Assignment'), and its successors and assignees, all of
Assignor's right, title and interest in and to all of the Project Assets and all
benefits arising thereunder or therefrom,  such Assignment to take effect on the
Assignment Date (as herein defined).

         2. (a)  Subject to the terms and  conditions  herein,  Assignee  hereby
assumes the Liabilities  specifically listed on Schedule B hereto, provided that
Assignee  shall not assume any  liability  in  connection  with the  Project (as
defined  in the Power  Purchase  and Sale  Contract  dated as of April 26,  1996
between Assignor and Assignee), the Project Assets or this Contract,  whether or
not listed on  Schedule B, until the  Assignment  Date or such later date as the
Assignment becomes effective under Section 4. Assignor specifically acknowledges
and agrees that  Assignee does not assume any liability not listed on Schedule B
and that Assignee shall have no  responsibility  for any liability in connection
with the


                                      -1-


Project,  the Project Assets or this Contract  prior to the  Assignment  Date or
such later date as the Assignment becomes effective under Section 4.

         (b) All  debts and  liabilities  of  Assignor  in  connection  with the
Project  (other  than those  listed on  Schedule  B),  whether  now  existing or
hereafter  arising,  shall be the sole obligation of Assignor and shall not give
rise to any actual or contingent  Lien (as herein defined) on any portion of the
Project, the Project Assets, Assignee, any assets of Assignee or any interest in
Assignee.  Assignee  shall  not be  liable  for any such  debts or  liabilities.
Assignor shall be obligated to repay such debts and liabilities in full and upon
such repayment shall provide  evidence  satisfactory to Assignee that such debts
and  liabilities  have  been  paid in full  and  that all  claims  and  liens in
connection therewith have been released.

         3.  Each  party  hereto  agrees  that it shall  execute  or cause to be
executed  promptly  after request by the other such  documents or instruments as
may be  reasonably  required  for  the  purpose  of or in  connection  with  the
assignment  by Assignor of the Project  Assets or the  assumption by Assignee of
the Liabilities pursuant to this Contract.

         4. Notwithstanding anything contained herein, to the extent the consent
of any third party is required as a condition to the  assignment  of any Project
Asset, the Assignment,  insofar as it encompasses such Project Asset,  shall not
be effective unless and until such consent shall have been obtained and Assignor
shall:  (a) until such time as such  consent  shall have been  obtained,  to the
extent possible obtain for Assignee the benefits of such Project Asset as though
the Assignment had been effective with respect to such Project Asset; and (b) be
obligated  to obtain the consent of such third  party.  At such time as Assignor
shall  obtain  the  required  consent to the  assignment  of any  Project  Asset
retained  by  Assignor   pursuant  to  this  Section  4,  the  Assignment  shall
immediately  become  effective  in  accordance  with the terms of this  Contract
without the need for further  action or further  documentation  by either  party
hereto. This Section 4 shall not apply to any transfer that does not require any
third party's consent.

         5. The  'Assignment  Date' shall be the date on which this  Contract is
formally signed by Assignor and Assignee, which date shall be after the business
license is issued to Assignee.

         6. Assignor  represents  and warrants to and covenants with Assignee as
follows:
         (a) Assignor has all necessary corporate power and authority to execute
and perform its obligations under this Contract;  the signing and performance by
Assignor of this Contract have been duly  authorized by all necessary  corporate
action on its  part;  and this  Contract  has been  duly and  validly  signed by
Assignor and constitutes its legal, valid and binding obligation, enforceable in
accordance with its terms.


                                      -2-


         (b) No  authorizations,  approvals  or  consents  of, and no filings or
registrations  with,  any  governmental  or  regulatory  authority or agency are
necessary for the signing or performance by Assignor of this Contract or for the
validity or enforceability thereof.

         (c) So long as  provisions  of this  Contract  are in effect,  Assignor
shall (i)  preserve  and maintain its  corporate  existence;  (ii)  preserve and
maintain all of its material rights, privileges and franchises; and (iii) comply
with the requirements of all applicable laws,  rules,  regulations and orders of
governmental or regulatory authorities.

         (d)  Assignor  is the sole legal and  beneficial  owner of the  Project
Assets free and clear of any Lien other than the Liabilities  listed on Schedule
B. 'Lien' means,  with respect to any  property,  any  mortgage,  lien,  pledge,
charge,  security interest,  encumbrance,  option, contract right or other third
party right of any kind in respect of such property.

         (e) The  Project  Assets  are in a good  state of  repair  and  working
condition  and comprise of all of the assets,  rights and  privileges  which are
currently or have been used or required by Assignor to carry on the Project.

         (f) There are no options or other  agreements or contracts  outstanding
which  provide for the sale or transfer or the right to require the  creation of
any Lien over the Project Assets or any part thereof.

         (g)  Assignee  shall upon taking over the Project  Assets have full and
complete  right,  title and interest in and to the Project Assets free and clear
of all Liens.

         (h) Neither  Assignor nor any of its  employees is engaged in or is the
subject of any litigation or arbitration, administrative or criminal proceedings
which may affect the Project Assets or the Project.

         (i) All the  books and  records  and other  materials  relevant  to the
Project have been fully,  properly  and  accurately  maintained  on a consistent
basis and have been turned over to Assignee.

         (j)  Except as  expressly  listed on  Schedule C hereto,  Assignor  has
conducted work in connection with the Project in all respects in accordance with
all applicable laws,  permits and regulations of the People's  Republic of China
and is  not  currently  in  violation  of  such  applicable  laws,  permits  and
regulations  including without limitation those of the environmental  protection
agency.  The Project  and its  business as  contemplated  will not violate  such
applicable laws and regulations  referred to above.  Assignor  acknowledges that
the approvals  listed on Schedule C have not been obtained and believes that the
lack of such approvals  will not have a serious impact on the Project.  Assignor
agrees to provide relevant  government  support  document(s) and try its best to
hold the Assignee harmless against losses in connection therewith.

                                      -3-


         (k)  Assignor  has  disclosed  to Assignee in writing full and complete
copies of all contracts and  arrangements  entered into prior to the date hereof
in respect of the Project  Assets and the  Projects;  and Assignor is not at the
date hereof a party to or subject to any agreement which is outside the ordinary
course of the business of the Project.

         (l) There are no claims of third parties or  liabilities or obligations
of any kind relating directly or indirectly to the Project or the Project Assets
except the Liabilities set forth on Schedule B hereto.

         (m) There are no contracts, obligations,  agreements or arrangements to
which Assignor is a party or by which Assignor is bound which are void,  illegal
or unenforceable under or contravening any laws, regulations or permits.

         (n)  Assignor  is not in  default  under  any  provision  of any of the
contracts  relating to the  Project to be assigned to Assignee  and no event has
occurred  which  constitutes a default,  or with the giving of default notice or
the passage of the default cure  period,  would  constitute a default  under the
foregoing contracts.

         (o) The approvals,  contracts and insurance  policies to be assigned to
Assignee are and will be on the date of such assignment in full force and effect
in accordance with their terms.

         (p) All  representations  and warranties  made by Assignor will be true
throughout the term of Assignee as a joint venture.

         (q) Assignor believes that the construction of the power plant complies
with all applicable laws, permits and regulations.

         (r) No tax  liability  shall be  incurred  by  Assignee  as a result of
Assignor's  transfer of the Project Assets to Assignee as Assignor  contribution
to the registered capital of Assignee.

         (s) Work relating to the Project that has been  completed  prior to the
Assignment  Date or such later date as the Assignment  becomes  effective  under
Section 4 is free from  defects  in title,  conforms  to  standards  of  design,
materials  and  workmanship  prevailing  in the  industry  and  conforms  in all
respects to the construction contract(s).

         (t)  Warranties  provided by  manufacturers  or  otherwise on equipment
transferred and other Project Assets are valid as of the Assignment Date or such
later date as the Assignment becomes effective under Section 4.

         (u) Assignor shall notify  Assignee  immediately in writing if Assignor
becomes aware of any  circumstances  that might make any of the  representations
and warranties hereunder untrue or misleading.

                                      -4-


         7. Assignor shall,  and does hereby agree to,  indemnify  Assignee for,
and hold it harmless from, (a) any and all liability, loss or damage (other than
to the extent resulting from the Liabilities  listed on Schedule B hereto) which
may be incurred under or by reason of this Contract or any breach by Assignor of
any of the representations, warranties, covenants or the terms of this Contract,
(b) any and all claims and  demands  whatsoever  which may be  asserted  against
Assignee by reason of this Contract (other than to the extent resulting from the
Liabilities listed on Schedule B hereto), (c) any and all claim, liability, loss
or damage  relating  to the  Project  or  Project  Assets  arising  prior to the
Assignment  Date or such later date as the Assignment is effective under Section
4 and (d) any and all claim,  liability,  loss or damage relating to the Project
or  Project  Assets  arising  after  Assignment  Date or such  later date as the
Assignment is effective under Section 4 (other than to the extent resulting from
the  Liabilities  listed on Schedule B hereto),  including in the case of any of
the  foregoing  items  (a)  through  (d)  all  costs,  expenses  and  reasonable
attorneys'  fees,  but excluding  any such loss,  liability,  damage,  claims or
demands  to  the  extent  resulting  directly  from  Assignee's   misconduct  or
negligence.

         8. (a) Both parties agree that the total value of the Project Assets as
of March 31, 1996 is an amount not less than RMB  301,648,069  and not exceeding
RMB312,808,069 (the 'Price Range').  Both parties shall endeavor to agree on the
precise value of the Project  Assets (the 'Final  Price') within the Price Range
prior to May 17, 1996. Upon reaching agreement on the Final Price, (i) the Final
Price shall be stated in Schedule A and Schedule B; (ii) both parties shall sign
Schedule A and Schedule B, which  signatures  shall be evidence that the parties
have reached agreement on the Final Price; and (iii) the transfer of the Project
Assets from  Assignor to Assignee in an amount equal to the Final Price shall be
deemed to have been made on the Assignment Date.

         (b) Notwithstanding  Section 8(a), the effective date of the Assignment
is the Assignment Date.

         (c) On the date the  parties  reach  agreement  on the Final  Price,  a
portion of the Final  Price equal to RMB  134,274,000  shall be  converted  into
Assignor's  contribution to the registered capital of Assignee and the remaining
amount of the Final  Price  shall be  deemed  to be the  first  drawdown  on the
shareholder loan required to be provided by Assignor to Assignee pursuant to the
Joint Venture Contract.

         (d) Both  parties  recognize  that certain of the  contracts  listed on
Schedule  B are not  based on fixed  prices  and that  certain  contract  prices
specified in Schedule B are subject to change. Assignee shall be responsible for
any such  price  changes  except  those  price  changes  that have been  already
accounted for in the Valuation  Report of the Assets of Jiaozuo  Aluminum Mill's
Self-Supply  Power  Plant  by  Henan  Provincial  Ownership  Rights  and  Assets
Valuation  Company,  Ltd.  dated June 28,  1995,  which price  changes  shall be
Assignor's responsibility.


                                      -5-


         9.  Failure by either  party to exercise  any of its rights  under this
Contract  shall not  constitute a waiver of such rights.  Neither party shall be
deemed to have  waived any right  resulting  from any  failure to perform by the
other party unless it has made such waiver specifically in writing.

         10. (a) The parties shall attempt to settle any dispute  arising out of
or in  connection  with this  Contract  through  friendly  consultation  between
themselves. Such consultation shall begin promptly after one party has delivered
to the other party a written  request for such  consultation.  If the parties do
not reach an amicable solution within 30 days of receipt of such notice,  either
party may,  with  notice to the other  party,  submit the  dispute  for  binding
arbitration  in Beijing,  China,  under the auspices of the China  International
Economic and Trade  Arbitration  Commission  ('CIETAC') in  accordance  with the
CIETAC  Arbitration  Rules as in effect on the date of this Contract  (except to
the extent this Section 10 specifies different  procedures,  in which event such
procedures  shall  govern  the  arbitration,  including  the  selection  of  the
arbitration  panel).  The parties  agree that any  dispute  arising out of or in
connection  with this Contract shall be submitted  exclusively to arbitration as
provided in this Section 10. Any settlement  and award rendered  through such an
arbitration  proceeding  shall be final  and  binding  upon the  parties  if the
decision  is  in  writing  and  contains  a  reasoned  analysis  explaining  the
arbitrators'  reasons  for  rendering  the  award.  The  parties  agree that the
arbitral award may be enforced against the parties or their assets wherever they
may be found and that a judgment  upon the arbitral  award may be entered in any
court having jurisdiction  thereof.  Accordingly,  the parties irrevocably agree
that any action to enforce such judgment may be instituted wherever  appropriate
and each party hereby  irrevocably  waives,  to the fullest extent  permitted by
law, any objection which it may have now or hereafter to the laying of the venue
or the  jurisdiction  or the  convenience  of the forum of any such  action  and
irrevocably  submits  generally and  unconditionally  to the jurisdiction of any
such court in any such action.

         (b) The  arbitration  shall be conducted in English and Chinese and the
arbitration shall refer to the English and Chinese texts of this Contract.

         (c) There shall be three arbitrators. The parties shall each select one
arbitrator  within 30 days after giving or receiving the demand for arbitration.
The two arbitrators  selected by the parties shall select the third  arbitrator.
If a party does not  appoint an  arbitrator  who has  consented  to  participate
within  30 days  after  the  selection  of the first  arbitrator,  the  relevant
appointment  shall be made by the arbitrating body. The costs of the arbitration
shall be borne by the parties as determined by the arbitration tribunal,  taking
into account the relative merits of the positions of the parties.

         (d) Each party is subject to civil and commercial  law and  irrevocably
agrees that this Contract is a commercial  rather than a public or  governmental
activity and neither party is entitled to claim immunity from legal  proceedings
with  respect to itself or any of its assets on the  grounds of  sovereignty  or
otherwise  under any law or in any  jurisdiction  where an action may be brought
for the enforcement of any of the obligations  arising under or relating

                                      -6-


to this  Contract.  To the  extent  that a  party  or any of its  assets  has or
hereafter may acquire any right to immunity from any set-off, legal proceedings,
attachment or execution of judgment on the grounds of  sovereignty or otherwise,
each party  hereby  irrevocably  waives such right to immunity in respect of its
obligations arising under or relating to this Contract.

         (e) The parties hereby agree to carry out their respective  obligations
under this  Contract,  including  without  limitation  all payment  obligations,
notwithstanding any pending dispute or controversy.

         11. This  Contract may be amended or modified  only by an instrument in
writing signed by both parties.

         12. This Contract will be executed in four counterparts in both Chinese
and English versions. Each version shall be of equal force and effect.

         13. This Contract shall be governed by and construed in accordance with
the laws of the People's Republic of China.

         14. The  invalidity  of any  provision or portion of this Contract will
not affect the validity of the remainder of this Contract.

         15. This Contract  contains the complete  agreement between the parties
with  respect  to  the  matters   contained  herein  and  supersedes  all  other
agreements,  whether  written or oral,  with  respect to the  matters  contained
herein.

         16. This Contract and the  Assignment  shall become  effective upon the
formal  signing by both parties of this Contract  after the business  license is
issued to Assignee.

         IN  WITNESS  WHEREOF,  each  of the  parties  hereto  has  caused  this
Assignment  and  Assumption  Contract  to  be  signed  by  its  duly  authorized
representative on the date first set forth above.

                                          JIAOZUO ALUMINUM MILL

                                          By: /s/ [SIGNATURE ILLEGIBLE]
                                             ---------------------------
                                          Name:
                                          Title:

                                          JIAOZUO WAN FANG POWER COMPANY LIMITED

                                          By: /s/ Edward C. Hall, III
                                             ---------------------------
                                          Name: 
                                          Title:


                                       -7-



                                   Schedule A

                             List of Project Assets

         This  Schedule A includes the list of Project  Assets in the  following
pages and any and all other property and assets,  whether tangible or intangible
and wherever located,  relating to the Project or any aspect of its development,
construction,  ownership,  financing  or  operation,  whether  in  the  name  of
Assignor,  any of its  affiliates  or any other party  (including  the contracts
listed on Schedule B and the rights and interests thereunder).

                                     
                                   SCHEDULE A

JIAOZUO POWER STATION PROJECT
Total Assets and Liabilities to be Transferred to the Joint Venture Company
(in RMB)


                                                                                                                1-June-95 to
                                                                    31-May-95          Adjustment to              31-Mar-96       
                                               31-May-95         Appraised Value      Appraised Value       Change in Book Value
Asset Type                                     Book Value                                                                       
                                                                                               
Land Use Right                                    8,601,274           81,940,628          (1,830,000)                7,598,845    
Civil Construction & Installation                11,175,884           26,670,090                   -                20,370,490   
Prepaid Construction                             17,361,078           17,361,078                   -                16,145,721    
Prepaid Equipment                                30,853,102           48,039,898          (2,973,902)                8,310,400    
Equipment in Warehouse                           22,470,903           38,770,903                   -                 2,800,563    
Fixed Assets                                              -                    -                   -                   617,220   
Inventory - Raw Materials                        10,521,054           10,657,218                   -                (1,840,111)   
Other Investment                                     53,206                    -                   -                   500,232    
Deferred Expenses                                21,237,317           29,788,617                   -                20,067,261    
Other Receivables                                 2,224,327            2,224,327                   -                   578,697   
Cash & Cash Equivalents                           4,229,322            4,229,322                   -                 4,541,607    
                                          ===================== =================== ===================== =========================

Total Assets                                    128,727,467          259,682,081          (4,803,902)               79,690,925    
                                          ===================== =================== ===================== =========================

Liabilities
Other Payables                                                                                                                     

                                          --------------------- ------------------- --------------------- -------------------------

Total Liabilities                                                                                                              

Capital
Contributed by PRC Partners
                                          ===================== =================== ===================== =========================

Total Liab. & Capital                               
                                          ===================== =================== ===================== =========================




                                               31-Mar-96
                                            Reappraised Value    Reference Pages
Asset Type                                  (JV Opening Bal.)
                                                           
Land Use Right                                 80,110,628           Sche. # 1
Civil Construction & Installation              47,040,580           Sche. # 2
Prepaid Construction                           33,506,799           Sche. # 3
Prepaid Equipment                              53,376,396           Sche. # 4
Equipment in Warehouse                         41,571,466           Sche. # 5
Fixed Assets                                      617,220           Sche. # 6
Inventory - Raw Materials                       8,817,107           Sche. # 7
Other Investment                                  500,232           Sche. # 8
Deferred Expenses                              49,855,878           Sche. # 9
Other Receivables                               2,803,024           Sche. # 10
Cash & Cash Equivalents                         8,770,929
                                          =====================

Total Assets                                  326,970,259
                                          =====================

Liabilities
Other Payables                                 25,322,190           Sche. # 11

                                          ---------------------

Total Liabilities                              25,322,190


Capital
Contributed by PRC Partners                   301,648,069
                                          =====================

Total Liab. & Capital                         326,970,259
                                          =====================



                                      Mam



Land Use Right

                                      (in RMB)                        1-June-95 to
                                     31-May-95      31-May-95          31-Mar-96          31-Mar-96           31-Mar-96
Account Items                        Book Value   Appraised Value     Change in BV        Book Value       Reappraised Value
                                                                                           
Land Acquiring Fee
    (area of 481,492.1 m2)           7,755,754      81,940,628          7,413,189        15,168,943           80,110,628
Land Investigation Fee                 461,000                              -               461,000                  -
Temporary Facility                     332,220                            185,656           517,876                  -
Electricity Transformer                 52,300                              -                52,300                  -
                                ----------------- ----------------- ----------------- ---------------    ---------------------

                    TOTAL            8,601,274      81,940,628          7,598,845        16,200,119           80,110,628


                            Sch. 1 - Land Use Right




Civil Construction

                                   (in RMB)         31-May-95         1-June-95 to                                31-Mar-96
                                   31-May-95      Appraised Value       31-Mar-96             31-Mar-96        Reappraised Value
Projects                           Book Value                          Change in BV          Book Value
                                                                                                      
Well #1                             315,171            490,601              -                  315,171              490,601
Well #2                             339,440            483,230              -                  339,440              483,230
Well #3                             343,855            491,980              -                  343,855              491,980
Well #4                             316,897            483,293              -                  316,897              483,293
Well #5                             341,097            484,294              -                  341,097              484,294
Well #6                             337,545            484,508              -                  337,545              484,508
Well #7                             337,513            484,098              -                  337,513              484,098
Well #8                             347,742            491,868              -                  347,742              491,868
Well #9                             139,020            496,880              -                  139,020              496,880
Well #10                            355,068            497,433              -                  355,068              497,433
Wall Surrounding the Well           184,030            184,031            19,235               203,265              203,266
Land Work on Water Source            60,000                  -              -                   60,000                    -
Main Plant Land Civil Work        5,946,279         10,558,400           246,060             6,192,339           10,804,460
Cooling Tower Civil Work             40,766          1,440,000           341,878               382,644            1,781,878
Plant Entrance Road Work            161,355          1,766,400           132,610               293,965            1,899,010
Plant Area Wall Construction        316,460            336,000             8,416               324,876              344,416
Main Bridge                         499,988          3,724,600           302,507               802,495            4,027,107
Chemney                             347,149          1,376,956         1,004,596             1,351,745            2,381,552
Dormitory                           383,695          1,632,000            81,132               464,827            1,713,132
Raw Material Storage                 62,814            763,518           284,954               347,768            1,048,472
Fine Stone                             -                  -                5,000                 5,000                5,000
Road for Coal Transport                -                  -                5,250                 5,250                5,250
Road Correction                        -                  -            1,111,440             1,111,440            1,111,440
Thermal Power Company                  -                  -            3,107,372             3,107,372            3,107,372
Main Plant Construction                -                  -           11,510,549            11,510,549           11,510,549
Canteen Outside the Plant              -                  -              254,888               254,888              254,888
Boiler Room                            -                  -              140,278               140,278              140,278
Building                               -                  -              466,551               466,551              466,551
Staff Canteen                          -                  -              684,656               684,656              684,656
Water Treatment                        -                  -              649,411               649,411              649,411
Warehouse                              -                  -               13,708                13,708               13,708
                               ----------------- ---------------- --------------------- -------------------- --------------------

TOTAL                            11,175,884         26,670,090        20,370,490            31,546,373           47,040,580


                           Sch. 2 - Civil Construction



Prepaid Construction


                                 (in RMB)         31-May-95       1-June-95 to                     31-Mar-96
                                  31-May-95      Appraised Value   31-Mar-96      31-Mar-96    Reappraised Value
Vendors                           Book Value                     Change in BV    Book Value
                                                                                 
Jiaozuo Geology Investigation       190,000           190,000               -        190,000        190,000
Xian City Construction            3,450,000         3,450,000      (3,450,000)             -              -
City Labor Services               1,809,324         1,809,324       1,500,010      3,309,334      3,309,334
Provincial Construction           5,500,000         5,500,000       6,476,395     11,976,395     11,976,395
Wushi 2nd Construction              766,790           766,790         (74,923)       691,867        691,867
Zheng Iron                           40,000            40,000       2,700,000      2,740,000      2,740,000
Provincial Thermal                3,030,963         3,030,963       3,808,241      6,839,204      6,839,204
Provincial Zhongyuen                600,000           600,000       1,080,000      1,680,000      1,680,000
Xinxian Geology Investigation       900,000           900,000       1,200,000      2,100,000      2,100,000
City Electricity                    400,000           400,000        (400,000)             -              -
Jiaozuo Electricity                 400,000           400,000        (400,000)             -              -
Xinguang Installation               240,000           240,000         300,000        540,000        540,000
Xinxian Construction                 34,000            34,000         (34,000)             -              -
Linzhou                                   -                 -         500,000        500,000        500,000
Jiazuo United                             -                 -       1,980,000      1,980,000      1,980,000
Zhengzhou City Electric                   -                 -         400,000        400,000        400,000
Chang Fire-proof Materials                -                 -         560,000        560,000        560,000
                              ----------------- ---------------- --------------- ------------   --------------

                  TOTAL          17,361,077        17,361,077      16,145,722     33,506,799     33,506,799


                         Sch. 3 - Prepaid Construction



Prepaid Equipment



                              (in RMB)          31-May-95          1-June-95 to                             31-Mar-96
                               31-May-95      Appraised Value       31-Mar-96            31-Mar-96      Reappraised Value
Equipment                      Book Value                          Change in BV          Book Value
                                                                                               
#1 Turbine Machine              7,380,000        15,600,000          1,000,000           8,380,000         16,600,000
#1 Turbine Generator            6,011,000        12,003,894                  -           6,011,000         12,003,894
Others                         17,462,102        17,462,102          7,310,400          24,772,502         24,772,502
                            ----------------- ---------------- --------------------- ------------------ -------------------

                  TOTAL        30,853,102        45,065,996          8,310,400          39,163,502         53,376,396


                           Sch. 4 - Prepaid Equipment




Equipment in Warehouse



                                               (in RMB)         31-May-95        1-June-95 to                         31-Mar-96
                                  # of        31-May-95      Appraised Value      31-Mar-96          31-Mar-96    Reappraised Value
Items                              Unit       Book Value                         Change in BV        Book Value
                                                                                                 
#1 Boiler                            1        20,700,000        37,000,000               -            20,700,000        37,000,000
#1 Boiler Transportation                         996,417           996,417               -               996,417           996,417
Prepaid Boiler Service Fees                      100,000           100,000               -               100,000           100,000
Water Pump for Boiler                1             2,406             2,406               -                 2,406             2,406
Switch                               1               565               565               -                   565               565
Fan Machine                          1             1,260             1,260               -                 1,260             1,260
Exchange Set                         2           214,500           214,500               -               214,500           214,500
Water Flow Reader                    5             1,533             1,533               -                 1,533             1,533
Motor                                3             1,115             1,115               -                 1,115             1,115
Pump                                 8           453,107           453,107               -               453,107           453,107
Ignition Set                         8                                             230,000               230,000           230,000
High Pressure Static Remover                                                       103,477               103,477           103,477
Turbine                                                                                780                   780               780
Mixer                                5                                             815,840               815,840           815,840
Breakers                             2                                             476,100               476,100           476,100
Generator                                                                            3,000                 3,000             3,000
SW2-110IW/160A                       6                                             604,018               604,018           604,018
Isolated Switch                      1                                             120,670               120,670           120,670
Electric Current Sensor                                                              2,140                 2,140             2,140
Electric Current Sensor                                                                250                   250               250
Electric Current Sensor                                                                535                   535               535
Electric Current Sensor                                                                535                   535               535
Voltage Sensor                       3                                             152,705               152,705           152,705
Voltage Sensor                       7                                             262,975               262,975           262,975
Electric Current Sensor                                                                504                   504               504
Switch                               1                                               7,281                 7,281             7,281
Switch                               3                                              15,842                15,842            15,842
Isolated Switch                                                                        570                   570               570
Isolated Switch                                                                      1,449                 1,449             1,449
Isolated Switch                                                                      1,072                 1,072             1,072
Electric Current Sensor                                                                547                   547               547
Electric Current Sensor                                                                273                   273               273
                                            --------------- ---------------- ------------------- ----------------- ---------------
                                              22,470,903        38,770,903       2,800,563            25,271,466        41,571,466



                        Sch. 5 - Equipment in Warehouse



Fixed Assets


                                                                    31-Mar-96              31-Mar-96
                                                   (in RMB)         Book Value         Reappraised Value
                                                                             
Yangcheng 1021                                         135,000
Depreciation                                           (36,043)
                                               ----------------- -----------------
                                          Net                             98,957            98,957
Audi 100                                               398,500
Depreciation                                                 -
                                               ----------------- -----------------
                                          Net                            398,500           398,500
Van                                                     38,250
Depreciation                                           (10,605)
                                               ----------------- -----------------
                                          Net                             27,645            27,645
Small Van                                              108,000
Depreciation                                           (15,882)
                                               ----------------- -----------------
                                          Net                             92,118            92,118

                            total:                                       617,220           617,220




                             Sch. 6 - Fixed Assets






Inventory Raw Materials




                                          (in RMB)         31-May-95         1-June-95 to                          31-Mar-96
                                          31-May-95      Appraised Value       31-Mar-96         31-Mar-96      Reappraised Value
Items                                     Book Value                          Change in BV      Book Value
                                                                                                         
Black Metal                               8,835,452         8,935,973         (1,329,764)       7,505,688          7,505,688
Color Metal                                  24,208            24,208             10,185           34,393             34,393
Materials for Electricity Work              288,221           288,221                140          288,361            288,361
Hardware Materials                               67                67                383              450                450
Screws                                            -                 -                395              395                395
Auto Parts                                      397               397              5,940            6,337              6,337
Construction Materials                    1,358,337         1,388,204           (392,315)         966,022            966,022
Water Heater                                  6,883            12,659             (3,070)           3,813              3,813
Low Value, Short Life Materials               5,119             5,119                 96            5,215              5,215
Fuel                                              -                 -                715              715                715
Labor Tools                                   2,370             2,370              3,348            5,718              5,718
                                     ----------------- ---------------- --------------------- --------------- -------------------

                  TOTAL                  10,521,054        10,657,218         (1,703,947)       8,817,107          8,817,107



                        Sch. 7 - Inventory Raw Material




Other Investments



                                                   (in RMB)         31-May-95                            31-Mar-96
                                                  31-May-95      Appraised Value      31-Mar-96      Reappraised Value
                                                  Book Value                         Book Value
                                                                                          
Training                                                                               451,674            451,674
Furniture and Appliances                             53,206                            101,763             48,558
                                               --------------- ---------------- ------------------ -------------------

                  TOTAL                              53,206                            553,438            500,232



                            Sch. 8 Other Investment



Deferred Expense



                                         (in RMB)         31-May-95         1-June-95 to                             31-Mar-96
                                         31-May-95      Appraised Value       31-Mar-96            31-Mar-96       Appraised Value
Items to be Amortized                    Book Value                          Change in BV         Book Value
                                                                                                      
Design Fee                               3,053,983         3,053,983          1,020,000           4,073,983          4,073,983
Research & Experimental Fee                  2,030             2,030                  -               2,030              2,030
Feasibility Study                          223,000           223,000             30,000             253,000            253,000
Environmental Evaluation                   117,500           117,500                  -             117,500            117,500
Temporary Pipeline                          26,382            26,382             25,775              52,157             52,157
Loan Interest                           13,911,399        21,465,647         13,809,260          27,720,659         35,274,907
Electricity                                395,493           395,493            982,395           1,377,888          1,377,888
Office Expense                             109,095           109,095            234,419             343,514            343,514
Travel                                     447,903           447,903            556,408           1,004,311          1,004,311
Entertainment                              870,071           870,071            749,540           1,619,611          1,619,611
Salaries and Benefits                      437,515           437,515          1,138,000           1,575,515          1,575,515
Other Compensation                         211,040           211,040            122,654             333,694            333,694
Tax                                         11,621            11,621             14,687              26,308             26,308
Repair Fee                                  51,082            51,082             57,539             108,621            108,621
Insurance Fee                               15,070            15,070             34,173              49,243             49,243
Printing Fee                                8,392             8,392              7,082              15,474             15,474
Penalty Fee                                 1,877             1,877              1,125               3,002              3,002
Transportation Fee                         43,032            43,032            114,696             157,728            157,728
Technical Information Fee                  25,772            25,772             54,730              80,502             80,502
Material Consumption                      198,629           198,629            193,567             392,196            392,196
Low value, short-live items                11,547            11,547             15,678              27,225             27,225
Other                                     142,194           142,194            657,538             799,732            799,732
                                      ----------------- ---------------- --------------------- ------------------ --------------

                  Subtotal             20,314,627        27,868,875         19,819,266          40,133,893         47,688,141

Office Equipment
(provided by the mill)

Passenger Vehicle                                           141,571                                                   141,571
Coupe                                                       450,000                                                   450,000
Mini-van                                                     42,000                                                    42,000
Motor Cycle 1                                                13,500                                                    13,500
Motor Cycle 2                                                 6,200                                                     6,200
Air-Conditioner 1                                            21,200                                                    21,200
Air-Conditioner 2                                             8,500                                                     8,500
Photocopy Machine                                            34,790                                                    34,790
Typewriter                                                   14,628                                                    14,628
Color TV 1                                                    5,738                                                     5,738
Color TV 2                                                    7,200                                                     7,200
Picture Developing Machine                                   13,200                                                    13,200
Security System                                               4,800                                                     4,800
TV                                                            9,600                                                     9,600
Bicycles                                                      1,604                                                     1,604
Phone                                                        14,280                                                    14,280
Mobile Phone                                                 56,400                                                    56,400
Pagers                                                       58,300                                                    58,300
Furniture                                                    93,542                                                    93,542
                                      ----------------- ---------------- --------------------- ------------------ --------------

                  Subtotal                                  997,053                                                   997,053



Jiangau Isuzu Van                         127,100           127,100                  -             127,100            127,100
Coupe                                     211,304           211,304                  -             211,304            211,304
Gold Cup Sealion Van                      358,900           358,900                  -             358,900            358,900
Tianjin Honda Motor Cycle                  11,050            11,050                  -              11,050             11,050
Golden City Suzuki Motor Cycle              8,800             8,800                  -               8,800              8,800
Telecommunication Network                 186,214           186,214             19,638             205,852            205,852
Measurement Equipment                      11,926            11,926                  -              11,926             11,926
Water Level Measuring Equipment             1,634             1,634                  -               1,634              1,634
TV                                          2,902             2,902                  -               2,902              2,902
Camera                                      1,580             1,580                  -               1,580              1,580
Other                                       1,280             1,280              2,967               4,247              4,247
Air Conditioner                                 -                 -            185,920             185,920            185,920
Mobil Phone                                     -                 -             39,470              39,470             39,470
                                      ----------------- ---------------- --------------------- ------------------ --------------

                  Subtotal                922,690           922,690            247,995           1,170,685          1,170,685

                  TOTAL                21,237,317        29,788,618         20,067,261          41,304,578         49,855,879



                           Sch. 9 - Deferred Expense




Other Receivables


                                                                  
                                          (in RMB)                        31-May-95                             31-Mar-96
                                                       31-May-95          Appraised        31-Mar-96      Reappraised Value
Receivable Item                                        Book Value           Value          Book Value
                                                                                           
Advances to Employees                                                                         974,166            974,166
Machuan Finance Ministry                                                                    1,000,000          1,000,000
Daiwang Finance Ministry                                                                       50,000             50,000
Provincial No. 2 Construction                                                                  31,300             31,300
Provincial Construction Service                                                                80,000             80,000
Jiaozuo Cable                                                                                     700                700
Provincial Design Institute                                                                     5,000              5,000
Jiaozuo Minery Department                                                                      50,000             50,000
Zhengzhou Cable                                                                                   600                600
Jiaozuo City Geology Investigation                                                            470,000            470,000
City Electricity Department                                                                   130,000            130,000
Canteen                                                                                        10,010             10,010
City North Transportation Station                                                               1,248              1,248
                                                    ----------------- ----------------- ---------------- ------------------

                  TOTAL                                                                     2,803,024          2,803,024


                           Sch 10 -Other Receivables




Other Payables


                                                                                                              31-Mar-96
                                                                                           31-Mar-96      Reappraised Value
                                                    Content                               Book Value
                                                                                                
Jiaozuo University (Xian Electricity University)    Training                                 7,300              7,300
Provincial Construction Investment                  Purchase of Material                   108,672            108,672
Shanghai Electric Construction                      Purchase of Material                   188,000            188,000
City No. 2 Cement Factory                           Purchase of Material                     9,500              9,500
Shishan Resource Trading                            Purchase of Material                         -                  -
City Resource Recycle Trading Co.                   Purchase of Material                    84,292             84,292
Provincial Foreign Investment Resource              Purchase of Material                 1,939,351          1,939,351
Provincial Metallic Material Co.                    Purchase of Material                 2,431,854          2,431,854
City Material Co.                                   Purchase of Material                   268,842            268,842
Provincial Metallic Material Development Co.        Purchase of Material                    81,043             81,043
Chungyuen Trading Co.                               Purchase of Material                 2,774,514          2,774,514
Xian Electric                                       Purchase of Equipmer                   310,002            310,002
Zhengyeung Switch                                   Purchase of Equipmer                   616,290            616,290
Nantung                                             Purchase of Equipmer                   500,000            500,000
City Resources Limited                              Purchase of Material                    23,205             23,205
Shanghai Boiler                                     Purchase of Boiler                   2,300,000          2,300,000
(Various Raw Material Suppliers)                    Purchase of Material                   433,597            433,597
                                                                                        ------------       -----------

                                                                                        12,076,462         12,076,462

Loan payable                                                                            12,500,000         13,000,000

Tax Payable (Construction Tax)                                                             245,728            245,728
- ------------------------------                                                          ------------       -----------

TOTAL                                                                                   24,822,190         25,322,190



                             Sch. 11 Other Payables




                                   Schedule B

                     List of Liabilities Assumed by Assignee


                                                    Equipment Contract
Jiaozuo Project

SCHEDULE B

List of Liabilities Assumed by Assignee

Equipment Contract


                                                                                        Contract  Amount Paid as       Amount O/S
    Reference      Equipment Name & Model Number    Manufacturer             Quantity     Amount    at Mar 31, 96     at Mar 31, 96
    ---------      -----------------------------    ------------             --------  -----------  -------------     -------------
                                                                                                       
1.a Turbine                                                                             (RMB'000)    (RMB'000)          (RMB'000)
         1         Turbine Machine #1,              Shanghai Turbine             1       12,300        8,380              3,920
                   N125-13.24/535/535
         2         Turbine Machine #2,              Shanghai Turbine             1       13,000        3,900              9,100
                   N125-13.24/535/535
         3         Turbine Generator #1,            Shanghai Electric            1        8,103        6,011              2,092
                   QFS-125-2 13.8kv
         4         Turbine Generator #2,            Shanghai Electric            1        8,012          801              7,211
                   QFS-125-2 13.8kv
         5         Air Condenser, N-71100-III,      Shanghai Station             1        4,480        1,948              2,532
                    61401-0-0, JD-330-1
         6         Low Pressure Heater, JD-220-4,   Shanghai Station             1          930           93                837
                    JD-260-3, JD-260-2
         7         High Pressure Heater,            Shanghai Station             1        2,290          229              2,061
                    JG-490-3-1, JG-450-3-2
         8         Pressure Reducing Set, C3D65-0   Shanghai Station             1          470           47                423
                    (WW202-0, Y3D23-0, TP4-D601-0,
                    TP4-D602-0, TP4-D201-0)
         9         Blowdown, 71102-0-0              Shanghai Station             1           35            4                 32
        10         Blowdown, 71202-0-0A             Shanghai Station             1           45            5                 41
        11         Condensing Pump, 12NL-160        Shanghai Pump Factory        2          600          180                420
                   Motor, JSL 12-4                  Shanghai Pump Factory        2          118           35                 83
        12         Water Supply Set, DGT 480-180    Shanghai Electric Construct  2        1,960          596              1,364
                   Water supply set motor,          (Ordered by Shanghai         2          470          282                188
                       ykds-3200-2,6kv                 Electric)
        13         Water Pump Set, 150NW-T8x2       Shanghai Pump Factory        2           81           24                 57
                   Motor, y55kw, 2p, 380v           Shanghai Pump Factory        2           21            6                 15
        14         Injection Pump, 250s-39A         Shanghai Pump Factory        2           22            7                 15
        15         Motor, y250m-4,380v, 55kw        Shanghai Pump Factory        2           19            6                 13
        16         Oil Pump 150y-150                Shanghai Pump Factory        1           15            5                 11
                   Motor, YB 315 L1-160KW           Shanghai Pump Factory        1           62           19                 44
        17         High Pressure Set, GS100, GL 440 Qingdao Boiler               2        1,600        1,100                500
        18         Bridge Crane, 75/20t             Dailian                      1        1,460        1,022                438
        19         Flushing Set                     Qingdao Electric Equipment   1          188            -                188
        20         Extraction Set                   Shanghai Turbine             2                                            -
                   Steam Seal Heater                Shanghai Turbine             1          200            -                200
        21         Water Filter                     Qingdao Electric Equipment   2           17            -                 17
        22         Extraction Set B151.81.21,       Shanghai                     3          210                             210
                    HB151.82.10
        23         Heater for Starting Gas PxP-160T Changzhou Northern Power     4          152            -                152
                                                                                      ----------- ------------- -----------------
                                                                                         56,861       24,699             32,162


                                       1




                                                    Equipment Contract
Jiaozuo Project

SCHEDULE B

List of Liabilities Assumed by Assignee

Equipment Contract



                                                                                         Contract  Amount Paid as       Amount O/S
    Reference      Equipment Name & Model Number    Manufacturer             Quantity     Amount    at Mar 31, 96     at Mar 31, 96
    ---------      -----------------------------    ------------             --------  -----------  -------------     -------------
                                                                                                        
1.b Boiler

         1         Boiler, SG 420/13.7-M419         Shanghai Boiler              1       23,000       20,700              2,300
         2         Boiler, SG 420/13.7-M419         Shanghai Boiler              1       23,000        4,600             18,400
         3         Ignition Set, KLD-2              Shanghai Boiler              8          230          230                  -
         4         Ignition Set, KLD-3              Shanghai Boiler              8          230            -                230
         5         Wind Box #1, 651419-4            Shanghai Boiler              1           80            -                 80
         6         Wind Box #2, 651419-4            Shanghai Boiler              1           80            -                 80
         7         Neunatic Actuator, ZGSA-160x300, Shanghai Boiler             40          150            -                150
                    ZSZ-63x125
         8         Neunatic Actuator, ZGSA-160x300, Shanghai Boiler             40          150                             150
                    ZSZ-63x125
         9         Ash Blower, 1K-525B (long)       Hebei Machinery              4          534          160                374
                   Ash Blower, IR-3 (short)         Hebei Machinery             24
        10         Copper Coal Grinder, MG350, 600  Jiaozuo Minery Factory       2        3,600        1,080              2,520
        11         Motor, YTM 630-6                 Xiangtan Minery Factory      2          690          240                450
        12         ESP, RWD-KFH/JZL-1-108x3-2       Chengzhou Electric Construct 2        5,700        1,995              3,705
        13         Start-up Boiler, SZS10-1.25/     Tianjin Boiler               1          466          310                156
                    300-y
        14         Coal Foeder, RMD063              Hebei Machinery Factory      2          140            -                140
        15         Scroper Coal Fine Conveyer,      Hebei Machinery Factory      1          217            -                217
                     RMSSF40
        16         Coarse Separator, HW-CB-I        Qingdao Boiler               2          191            -                191
        17         Fine Separator, HW-XB-I          Qingdao Boiler               2          132            -                132
        18         Fan (Separator), M5-29-11        Chengdu Machinery            2          284          120                164
        19         Draft Fan, G4-73-11              Chengdu Machinery            2          156          120                 36
        20         Inducing Fan, Y4-2X60-01         Chengdu Machinery            2        1,260          760                500
        21         Motor, YFKK450-4, YFKK6301-8,    Zangyeung Electric           6        1,252            -              1,252
                    YFKK5001-4
        22         Coal Greeze Feeder, GF-9         Zangyeung Electric          12          144            -                144
        23         Fan Muffler, ZK-LT-20x3.2-A      Chengdu Electric             2          140            -                140
        24         Elevator, TLJ1000/1.0-JX.PC      Changzhou Elavator           1          250           50                200
        25         Lubricant Dilution, GDZ-63       Shenyang Minery              2          100            -                100
        26         Injection Lubrication Set,       Shenyang Lubrication Factory 2           78            -                 78
                    SZP-2A                                                               ----------  --------     -------------
                                                                                         62,254       30,365             31,889

                                       2





                                                    Equipment Contract
Jiaozuo Project

SCHEDULE B

List of Liabilities Assumed by Assignee

Equipment Contract



                                                                                         Contract   Amount Paid as    Amount O/S
     Reference     Equipment Name & Model Number    Manufacturer             Quantity      Amount     at Mar 31, 96   at Mar 31, 96
     ---------     -----------------------------    ------------             --------    ----------   -------------   -------------
                                                                                                      
2. Coal Handle
         1         Truck Unloader, QX280-12         Hunan Electric Equipment      2         620          186                434
         2         Bucket Wheel Reclaimer,          Daichung Co.                  1        3,700         500              3,200
                    DQL500/500-25
         3         Screen, GGS-600                  Shenyang Electric             2          200           -                200
         4         Hopper Crusher, PCH-1016         Hebei Minery Equipment        2          456           -                456
         5         Iron Picker, RCDD-12             Jenjiang Magnetic Equipment   2          178           -                178
         6         Iron Picker, RCDD-10             Jenjiang Magnetic Equipment   2          108           -                108
         7         Blade Wheel Feeder, QYG-600A     Shenyang Electric Machinery   2          590           -                590
         8         Belt Conveyer, B 1000mm          Jiaozuo Forklift             11        3,875           -              3,875
         9         Plow Unloader, B 1000mm          Zhengzou Electric Equipment   6          108           -                108
        10         Electric Circuit, 800x800        Zhengzou Electric Equipment   4           36           -                 36
        11         Water Scrapper                   Zhengzou Electric Equipment   1           10           -                 10
        12         Seal of Coal Silo                Shenyang Electric Machinery 269          121           -                121
        13         Damper Air Lock, 4A              Wuxi Electric Supply          4           60           -                 60
        14         Bulk Material Handle             Wuxi Electric Supply          4           60           -                 60
        15         Crane, LD                        Luoyang Forklift              1           42           -                 42
        16         Crane, LD                        Luoyang Forklift              1           40           -                 40
        17         Electric Belt, TCS-Y901          Jiangsu Electronic Scale      4          497           -                497
        18         Truck Scale Balance              Xishan Equipment             32          302           -                302
        19         Electric motor vehicle           Changzhou Limited Company     1          111           -                111
                                                                                        --------------- ----------- -------------
                                                                                          11,114         686             10,428


3. Ash and Slag
         1         Boam Crane, LD                   Luo Yang Fortlift             1          35            -                 35
         2         Ash Discharge Valve, XZ320       Zhengzou Electric Equipment  12          31            -                 31
         3         Air Lock, DDBS-20/40             Zhengzou Electric Equipment   8          80            -                 80
         4         Air Lock, DDS-20                 Zhengzou Electric Equipment   4          36            -                 36
         5         Three-Way Buffle Plate, 320x320  Zhengzou Electric Equipment  12          36            -                 36
         6         Truck Loading Equipment          Zhengzou Electric Construct   1          58            -                 58
         7         Neumatic Transportation Pump,    Zhejiang Electric Construct   8         640            -                640
                    CD4.0-1800
         8         Neumatic Transportation Pump,    Zhejiang Electric Construct   4         272            -                272
                    CD2.5-1600
                   Solinoid Valve, DFX-IID          Zhejiang Electric Construct   6          96            -                 96
         9         Mixer/Feeder/Discharge Valve     Nantong Construction Equip.   5         816          500                316
        10         Oil Cooled Screw Air Compressor  Shanghai Installation         4         940            -                940
                    Heater, DYK-30, DKY-45          Jiangsu Generation Equipment  6         150            -                150
                                                                                     --------------- ------------ --------------
                                                                                          3,190          500              2,690


                                       3




                                                    Equipment Contract
Jiaozuo Project

SCHEDULE B

List of Liabilities Assumed by Assignee

Equipment Contract


                                                                                          Contract  Amount Paid as at   Amount O/S
       Reference   Equipment Name & Model Number    Manufacturer               Quantity    Amount     Mar 31, 96      at Mar 31, 96
       ---------   -----------------------------    ------------               --------  ---------    ----------      -------------
                                                                                                       
4.Demineralization
         1         H+Ion Exchanhger, 1800R+-1250    Xian Xibei Electric Construct  5        169          169
         2         Cathode Ion Exchanger, 1800R-    Xian Xibei Electric Construct  5        169          169
                    -1250
         3         Mixed Ion Exchanger, 1250R+-5,   Xian Xibei Electric Construct  2         52           38                 14
                    R- -1000
         4         CO2 Remover                      Xian Xibei Electric Construct  2         63                              63
         5         Resin Catcher                    Xian Xibei Electric Construct  4         12                              12
         6         Acid Absorber                    Xian Xibei Electric Construct  1          5                               5
         7         Acid Tank                        Central Electric               2        124          112                 12
         8         Alkaline Tank                    Central Electric               2        124          112                 12
         9         Acid Scaling Tank - Anode Bed    City Demin. Group              1          9                               9
        10         Acid Scaling Tank - Mixed Bed    City Demin. Group              1          7                               7
        11         Alkaline Scaling Tank -          City Demin. Group              1          9                               9
                    Cathode Bed
        12         Alkaline Scaling Tank -          City Demin. Group              1          7                               7
                    Mixed Bed
        13         Steel Filter Tank                Anyeung Water Treatment        2        272                             272
        14         Installation                     Yixing Water Treatment         8        912
                                                                                        ------------ ---------------- -------------
                                                                                          1,934          600                422


5.a.Electric System
         1         Transformer, SFPZ7-90000/220     Xian Transformer               1      4,700        1,000               3,700
         2         Transformer, SFP7-150000/110     Xian Transformer               1      4,300        1,000               3,300
         3         Standby Transformer,             Xian Transformer               1      1,240                            1,240
                    SF27-20000/110
         4         Transformer for the Plant,       Xian Transformer               1        830                              830
                    SF7-20000/13.8
         5         Circuit Breaker,                 Zhenyeung Switch               2        456          300                 156
                    SW2-220IIIW/1600A
         6         Circuit Breaker,                 Zhenyeung Switch               6        588          300                 288
                    SW2-110IW/1600A
         7         Switch, GW8-110W/400A            Zhenyeung Switch               1          7                                7
         8         Switch, GW8-60W/400A             Zhenyeung Switch               3         15                               15
         9         Isolation Switch, GN23-20Z/8000A Zhenyeung Switch               1        118                              118
        10         Lightening Arrestor,             Nanyeung Lightening Arrestor   6        180          180
                    Y10W-200/520(W)
        11         Lightening Arrestor,             Nanyeung Lightening Arrestor  15        233           20                 213
                    Y10W-108/268(W)
        12         Lightening, Y1W-146W             Nanyeung Lightening Arrestor   1         17                               17
        13         Lightening, Y1W-60W              Nanyeung Lightening Arrestor   3         22                               22
        14         Lightening, Y25W-16.7            Nanyeung Lightening Arrestor   3          3                                3
        15         Discharge Record, JSY-10         Nanyeung Lightening Arrestor  25          8                                8
        16         H.V.Panel                        Xinyeung Switch                7        510          102                 408


                                       4




                                                    Equipment Contract
Jiaozuo Project

SCHEDULE B

List of Liabilities Assumed by Assignee

Equipment Contract


                                                                                          Contract    Amount Paid as    Amount O/S
    Reference      Equipment Name & Model Number    Manufacturer             Quantity       Amount     at Mar 31, 96  at Mar 31, 96
    ---------      -----------------------------    ------------             --------    ----------    -------------  -------------
                                                                                                    
       17          PT TYD220                        Xian Electric                 3         151          106                 45
       18          PT TYD110                        Xian Electric                 7         259          100                159
       19          CT                               Zhenyeung Equipment          43         960          300                660
       20          Isolation Switch, GW4            Wushun Electric              41         870          100                770

                                                                                         -----------  ------------- -------------
                                                                                         15,466        3,508             11,958
6.b. Plant Power
        1          Dry Transformer, SCL2-1250/6,    Beijing Transformer           4         614                             614
                       SCL2-100
        2          BGZN-27x2x300/220                Xinxian 755                   2       1,354                           1,354
                   BGZN-27-2x100/220                Xinxian 755                   1         387                             387
        3          NIFE901-220-40                   Shanghai                      2       1,340                           1,340
        4          6KV high voltage box, JYN3-10    Xinhong Industrial Automatic 71       2,980                           2,980
        5          GSF-1 ACF                        Xinhong Industrial Automatic  8         281                             281
        6          GKG-1, GFKG-6                    Xinhong Industrial Automatic 21         263                             263
                                                                                         ------------- ------------ --------------
                                                                                          7,219                           7,219
Instrumentation
        1         General DCS System                Shenzhen                       2      6,998                           6,998
        2         Boiler/Turbine Protection System  Jiaozuo                        1      1,370                           1,370
        3         Secondary Air Gate/Swing Cylinder Suian City                    10        145                             145
                    Central Panel, FDK-1
        4         Thermal Set Control System        Shenzhen Electric Power        2      1,979
        5         Monitor System                    Shenzhen Wanyue                1        227                             227
                                                                                         ------------- ------------ --------------
                                                                                         10,719                           8,740
    8. Water System
        1         Recirculation Pump, 1200HLCB3-19, Shanghai (KSB)                 4      1,941        1,081                860
                       YL800KW10P6kv
        2         Booster, 500S-22B                 Shanghai (KSB)                 2        106           32                 74
        3         Crane, 16/3.2t                    Xin Xian                       1        240            -                240

                                                                                        -------------- ------------ --------------
                                                                                          2,287        1,113              1,174
                                       
                                                                                        171,043       61,471            106,682

                                       5





                                                    Construction Contract


SCHEDULE B

List of Liabilities Assumed by Assignee

Construction Contract



                                                                                                                 Amount
                                                                 Total       Prepaid           Civil              O/S
Ref#     Project                        Contractor              Amount     Construction     Construction      March 31, 96
- ----     -------                        ----------             -------     ------------     ------------      ------------
                                                                                            
                                                              (RMB'000)     (RMB'000)        (RMB'000)         (RMB'000)
 1       Thermal System                 Henan Construction      28,440                                           28,440
         Fuel System                    Henan Construction      12,040                                           12,040
         Water Supply System            Henan Construction      18,540                                           18,540
         Turbine System                 Henan Construction       2,710                                            2,710
         Water Treatment System         Henan Construction       1,850                                            1,850
         Generation Support System      Henan Construction       2,130                                            2,130
         Supplementary System           Henan Construction       6,970                                            6,970
         Other                          Henan Construction       4,370                                            4,370
                                                               -------- ----------------   --------------    --------------


                                                                77,050          12,940          14,820           49,290

 2       Staff Dormitory                Zhongyeun Construct      2,000           1,680             460                -

 3       Dormitory Water & Electricity  Xinguang Installation      800             540                              260
         Supply
         Conference Room                Xinguang Installation       70                                               70
                                                               --------- ----------------  --------------    --------------

                                                                   870             540               -              330

 4       No.I 110kv Cable Modification  Jiaozuo Electric           570                                              570
         No.II 110kv Cable Modification Jiaozuo Electric           560                                              560
                                                               ---------- ---------------- --------------    --------------

                                                                 1,130              --           1,110               20

 5       Road Work Outside the Plant    Jiaozuo City Construct   1,600                                            1,600
         Tower Construction             Jiaozuo City Construct     300                                              300
                                                               ---------- ---------------- --------------    --------------
                                                                 1,900           3,310             290                -

 6       Cooling Tower Civil Work       Hungda                   1,620              --              --            1,620

 7       Canteen Outside the Plant      Linzhou                  1,120             500             250              370

 8       Cooling Tower Fine Stone       Xinxian                  1,300                                            1,300
                                                                   350                                              350
                                                               ----------- --------------- --------------    --------------

                                                                 1,650           2,100             390                -

 9       Pole                           Zheng Iron               6,000           2,740             800            2,460

10       Water Well                     Jiaozuo Mineral Water    3,770             190           3,440              140

11       Warehouse                      Wushi                      800             690             360                -

12       Underground Water Pipe         City Water                               1,980                                -

13       Installation                   Provincial Thermal     150,000           6,840           3,110          140,050

14       Main Plant Construction        Xian                     6,190               -           6,190                -

15       Plant Wall                     Chang                      320                             320                -
                                                               --------- ----------------  --------------    --------------

                                               TOTAL           254,420          33,510          31,540          194,280



                                       6






                                   Schedule C

                         List of Approvals Not Obtained

         Assignor  acknowledges  that as of the date hereof, it has not received
the following approvals:

         1.       Construction Engineering Permit

         2.       Construction Start Permit












                                      D-1