DSR 11 (Revised)

CONFIDENTIAL

DRAFT:

XXXXXletter XXXAK3⁄4XXXXXXXXe

TYPE: Draft/Final 1+

FROM:

Reference

CHIEF CLERK

DEPARTMENT:

TEL. NO:

SECURITY CLASSIFICATION

TO:

Top Secret

Secret

Confidential

Sir Murray MacLehose GBE KCMG KCVO Governor and Commander-in-Chief HONG KONG

Your Reference

Copies to:

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Unclassified

PRIVACY MARKING

..In Confidence

CAVEAT..

///

Enclosures-flag(s)...........

SUBJECT:

GUANGDONG NUCLEAR PROJECT

TJ B George Esq PEKING

* DM March is a

BTC

HONG KONG

1. When you called on 8 August we discussed the recent

round of calls by Lawrence Kadoorie on Ministers in London

to seek support for this project. I enclose copies of the

records of the meetings which show that he was warmly

received. At the same time Ministers have not specifically

agreed to any of his proposals for equity participation

by HMG in the project.

important points which the DOI are following up, not only

on the immediate financial implications, but also on the

difficult question of accident liability by participating

governments. I know that you will equally be considering

the question of possible Hong Kong participation.

2.

There areas you know, a number of

Another angle to the story, however, is Kadoorie's

view of the political implications of the project. As you know, he tends to believe that the China's chief motive

has now become a political one and that the scheme could

in some sense lead to a solution to the issue of Hong

Kong's future. It is not very clear exactly what he has

in mind. He points to the size of the project, the

proposal for participation by the 3 Governments and to the

fact that the agreement would run beyond 1997. He believes

CONFIDENTIAL

/that

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