Sub sale scuttled

(First Edition)

BONN (Reuter) - Germany's troubled ship-building industry suffered a blow when Bonn rejected its request to sell warships to Taiwan, apparently because of fears it would damage relations with China. The Federal Security Council, a committee of top ministers chaired by Chancellor Kohl, turned down an initial order for two submarines, but the decision scuttled a proposed sale of 10 submarines and 10 frigates.