COMIDENTIAL

of NNC seems to have been active in Guangdong recently trying to

There was

promote the idea of a substantial NNC role. Miss Parkin was asked to

contact Stewart at NNC to get him to restrain Mr Potter.

some debate about the possibility of Westinghouse being a centender in

its own right. The US position on non proliferation was not totally

clear. Although the State Department now seemed to be holdong out

the possibility of a sale of a US reactor to China this had not been

the case. It was possible that the prospects of substantial business

and wider political arguments might confirm the change of heart. On

the other hand, especially with an election looming, there was no

guarantee of a continuity of policy. GEC seemed still to be inclined

towards Framatome and the fear, of the Americans might enable and had

a clear preference for the NS3 supplier to take total

responsibility for the nuclear island. GEC to negotiate better terms

with KEC/CLP discussions with the French.

contractual

Departments were asked to consider the contents of the draft

Prime Minister's brief circulated at the meeting and to phone comments

to Mr Brown who would submit.

NR Brice

July 1980

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