HONG KONG, June 5: French firms would fall to win major subway contracts In the southern Chinese city of Guangzhou because of commercial not political reasons, an official was quoted as saying yesterday, reports AFP.

Guangzhou underground Railway Corp. Deputy Genera] Manager Jin Feng told reporters Monday that French companies would not be awarded any of the projects — worth an estimated eight billion yuan (1.4 billion US dollar) — later this year because of uncompetitive tenders and late submission.

Jin denied skipping over French companies for political reasons.

Following France s sale of mirage fighter planes to Beijing's rival Taipei in December, China retaliated by closing down the French consulate in Guangzhou and warned French firms would be blocked from any major infras tructural projects, including the Guangzhou subway.

Jin emphasised the corporation had a good working rela tionship with some French firms, saying it had signed a software contract worth more than three million French franc (548,400 dollar) with some and that one was a technical con suitant to the corporation.

More than 00 companies from 15 countries have submitted tender* for the subway pro jects. Construction Is due to start later this year The first stage Is scheduled to have a triad run in 1997 and go into service In 1998.