Secretary of State for Industry
The Rt Hon the Lord Carrington KCMG MC Secretary of State for
Foreign and Commonwealth Affairs HM Diplomatic Service Foreign and
Commonwealth Office
Downing Street
London SW1A 2AL
Scan Purn.
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For advice pope.
22
PS
DEPARTMENT OF NDUSTRY P/LPS
ASHDOWN HOUSE
123 VICTORIA STREET
LONDON SWIE 6RB
TELEPHONE DIRECT LINE
P3/MrB PS/PUJ
01-212 3301 Mar Carts
SWITCHBOARD 01-212 7676
13 February 1980
MEN 164/Boil
RECEIVED IN REGISTRY NO. 75
FEB 1980
PRICEA
REGISTRY Action Taken
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GUANGDONG NUCLEAR POWER-STATION, PEOPLE'S REPUBLIC OF CHINA
On 25 October last year at the time of Chairman Hua's visit, I informed you and colleagues of possible UK involvement in the construction of a nuclear power-station in the Chinese Province of Guangdong. Under the proposal a joint venture for the construction and operation of the station would be established between Guangdong Electricity Company and the China Light and Power Company of Hong Kong (CLP), with Hong Kong taking about half of the station's output.
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Since then officials have been reviewing developments, keeping closely in touch with both CLP and the Hong Kong authorities. The attached report, which reflects the views of UK Departments as well as the Hong Kong authorities, proposes that the UK should continue its close involvement in the project and recommends
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a line to take with the Chinese on the issue of nuclear safeguards.
Although there must be some uncertainty as to whether the project will even receive assent from Peking, it offers the potential for £380m worth of export business to our power-plant manufacturers in a situation where the Hong Kong connection should be an important asset. I consider it is, therefore, worth pursuing along the lines set out in the report by officials, provided you are content with the recommendations on how the issue of nuclear safeguards should be handled.
If you agree the line proposed, I doubt if a Ministerial meeting is necessary.
/I