DEPARTMENT OF TRADE

1 VICTORIA STREET LONDON SW1H OET

Telephone 01-215 7877

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MEN 166/301/1

RECEIVED YR MOOISTRY NO. 75

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From the Secretary of State

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The Rt Hon Sir Keith Joseph Bt MP

Secretary of State for Industry

Department of Industry

Ashdown House

123 Victoria Street

London, SW1E 6RB

Dear Keilt

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12 March 1980

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GUANGDONG NUCLEAR POWER STATION, PEOPLE'S REPUBLIC OF CHINA

Thank you for copying to me your letter of 18 February to the

Foreign Secretary.

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While I have no illusions about the difficulties of securing such a project for the UK, I agree that it is worth pursuing along the lines suggested in the paper by officials. Success would be valuable both for the direct business it would bring and, perhaps more importantly, as a valuable demonstration of the UK's capacity for project management and major contracting work.

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I am, of course, sensitive to the non-proliferation issue. But

I would not wish the UK to lose the contract to a competitor because

of the relative stringency of our terms. I hope therefore that in the final analysis we would not insist on stronger terms than those already indicated by the French.

I am copying this letter to the Prime Minister, Lord Carrington, David Howell and Sir Robert Armstrong.

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PS. I spoke at love the to Kadsome about this Priest recantly, I will report to one orally on what his sand

JOHN HOTT

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