EXPORT BUSINESS TO THE POWER PLANT INDUSTRY AND ON THAT BASIS ALONE SEEMS WORTH PURSUING. ALTHOUGH THE UK'S NEGOTIATING POSITION IS NOT PARTICULARLY STRONG, THE HONG KONG CONNECTION SHOULD APPEAR OF IMPORTANCE TO THE CHINESE WHO HAVE TO SATISFY BOTH THE HONG KONG GOVERNMENT AND CLP BEFORE THE PROJECT CAN PROCEED. ALTHOUGH THERE ARE LIMITS TO THE WILLINGNESS OF THE HONG KONG GOVERNMENT TO PRESS THE ARGUMENT FOR UK MANUFACTURING INVOLVEMENT, CUP AND ITS CHAIRMAN SIR LAURENCE KADOORTE ARE FAVOURABLY DISPOSED TOWARDS UK EQUIPMENT AND OPEN TO GENERAL INFLUENCE ON UK INVOLVEMENT, THE UK MIGHT ALSO EXERT DIRECT POLITICAL LEVERAGE AT AN APPROPRIATE STAGE IN PEKING WHERE THE FINAL DECISIONS ON THIS PROJECT WILL BE TAKEN.
THOUGH CLP ARE CURRENTLY ILL-EQUIPPED TO PROCEED ON FEASIBILITY STUDIES INTO NUCLEAR MATTERS, THE UK HAS TECHNICAL SUPPORT PARTICULARLY FROM NPC WHICH SHOULD BE MADE AVAILABLE TO BOTH CLP AND HONG KONG GOVERNMENT, DIRECT HMG INVOLVEMENT MAY FROM TIME TO TIME ALSO PROVE NECESSARY TO SAFEGUARD THE UK'S INDUSTRIAL AND FINANCIAL INTERESTS. IN TERMS OF FOREIGN AND NUCLEAR POLICY THERE IS NO COMPELLING REASON TO SEEK SAFEGUARDS ON ANY NUCLEAR EQUIPMENT OR MATERIAL WE MAY SELL TO CHINA, WE SHOULD INDICATE OUR POSITION TO THE CHINESE, BUT IN VIEW OF OUR CONCERN ABOUT INDIA WE SHOULD STOP SHORT OF AN OFFICIAL COMMITMENT NOT TO SEEK INSPECTION, WE SHOULD EXPLORE THE SCOPE FOR DRAWING THEM MORE FULLY INTO INTERNATIONAL EFFORTS TO CONTAIN NUCLEAR
WEAPONS PROLIFERATION.
RECOMMENDATIONS
WE ACCORDINGLY RECOMMEND THAT:
1. MINISTERS SHOULD ENDORSE THE CONTINUED UK INDUSTRIAL AND OFFICIAL INVOLVEMENTS IN THE NUCLEAR PROJECT AS SET OUT IN THE PAPER.
2. MINISTERS SHOULD AGREE THAT INSTRUCTIONS SHOULD BE SENT TO HMA PEKING ON THE LINES OF PARAGRAPH X BELOW,
FINAL PARAGRAPH OF REVISED **FOREIGN POLICY CONSIDERATIONS'' ACTION WITH THE CHINESE
X. WE COULD INSTRUCT HMA PEKING TO SPEAK TO THE CHINESE ON THE FOLLOWING LINES, WHICH TAKES INTO ACCOUNT THE VARIOUS CONSIDERATIONS ABOVE:
1) TO INDICATE THE ASSURANCES WHICH WE SHOULD DEFINITELY NEED: 11) TO TAKE EXPLICIT NOTE OF THEIR POSITION ABOUT INSPECTION. CUR AIM WOULD BE TO LEAVE THE CHINESE WITH A FAIRLY CLEAR IMPRESSION THAT WE WOULD NOT SEEK INSPECTION WITHOUT, HOWEVER,