contracted to build Hong Kong's CT9 container terminal, Lloyd's List said.

The decision may break an impasse between the UK and China over the construction of the CT9 terminal awarded to the Tsing Ye consortium.

Jardine Matheson is a leading member of the Tsing Ye consortium. The consortium also includes US container carrier Sea-Land, Sinotrans, Hanjin and two Hong Kong property companies.

Chinese authorities said last September they were not happy with Jardine Matheson's involvement claiming the company had secured the contract by backing the political reforms of Hong Kong Governor Chris Patten.

Chinese apathy against Jardine Matheson apparently goes back to the 19th Century and the group's involvement in the opium trade.

China has been able to block the CT9 development because it straddles the 1997 deadline for hand over of the British colony.

The issue has been complicated by Jardine Matheson's decision to delist subsidiary companies from Hong Kong.

"While Hong Kong remains an important business centre and location for the group its `regulatory and corporate governance repositioning', had the company admitted, upset China,'' Lloyd's said.

Construction of CT9 was to begin in October with the first berth due to be operational in November 1996.

The fourth and final berth was scheduled for completion in 1988.