CONFIDENTIAL

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Chinese really attach importance to it and in view of project's

significance.

6. [If pressed on:

(a) nuclear non-proliferation:

primarily a matter for government

of supplier of the nuclear reactor. We would of course wish

to take part in any discussions, but would not expect more

restrictive conditions than likely to be required by other

government;

(b) accident liability: we recognise this raises important

questions which will need to be discussed at a later stage

between our two governments;

(c) credit facilities:

terms available from UK will be at least

as favourable as those on offer from elsewhere.]

CONFIDENTIAL

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