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From the

Senior British Trade Commissioner

شتمل اسلام ليد

GAMMON HOUSE

22 December 1979

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PERSONAL AND CONFIDENTIAL

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Guangdong Nuclear Project

delined by Crunch

27/12/79

C2 24/12

John Lippit has asked me to pass you the following message which reflects our current thinking about the way forward in the light of your discussions in Canton from Tovember 22 - 29:-

"Dear Lawrence

I am most grateful for the care you have taken to keep me fully informed on the progress of CLP's discussions with the Guangdong Electric Company about a possible nuclear joint venture. As agreed during our recent meeting in London, all the departments concerned in London recognise that the project offers valuable prospects for our manufacturing industry and above all an opportunity to construct an important link in the relationship between Hong Kong and Guangdong Province.

As you know the Nuclear Power Corporation (NPC), in which HMG has a significant interest, stands ready to act as Managing/Agent/Project Director in order to provide CLP with all the necessary nuclear expertise and to coordinate the back-up arrangements including the supply of nuclear fuel and the reprocessing capability. You are fully aware of the resources the CECB would make available, and I know you value these. Our financial institutions also have the capability to offer the type of financial package necessary for a project of this magnitude. We are of course very grateful for the degree to which you have already reminded the KEC of CLP's, close working relationship with HMG, the CEGR and the Power Ceneration companies.

/ However

Sir Lawrence Radoorie CBE K.SEJ(A) LID JP

China Light and Power Company

St George's Building

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