CONFIDEL. TAL
facilities available under the Overseas Projects Fund, offered CLP part of the cost of a feasibility study, the total cost of which would be shared with the Chinese. If accepted, this would secure. UK participation on the Working Group.
NUCLEAR COLLABORATION
22 In the earlier discussions between FC and the Guangdong authorities the latter expressed a preference for a Magnox reactor. There is now however a clear Chinese preference for a FWR. Four countries have the necessary IWR capability: Japan, America, Federal Republic of Germany and France. China has suggested she
might seek direct offers from the last three countries and the UK. While the UK can supply about 80% of the hardware value of such a
station, it does not currently have the capability to supply the nuclear steam supply system - the heart of the nuclear island - and it will therefore be necessary for the UK to enter a joint venture with another country but preferably maintaining the lead on the project.
23
Owing to the greater restrictions applying to direct exports of the Westinghouse HR compared with sales by foreign licensees, the USA conditions of supply would probably be unacceptable to the Chinese; they could however, change with developments in the latest international situation. The French, on the other hand, have already established themselves as a potential FR supplier to the Chinese and they are most likely to be the preferred choice. horeover, the French have shown recent interest in collaborating with the UK on the PWR. The FGX is a possible partner and so in theory is Japan though the Chinese have shown no interest in the
latter.
CONFIDENTIAL
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