Points raised during an Informal Discussion between Mr. W. F. Stones and Mr. Chen Gang
at a Dinner Party in Hong Kong on 22nd July, 1980
Knowing that a nuclear project was being planned for Guangdong Province, many foreign countries have approached the Chinese Government on this matter. For example, the French Consul General in Hong Kong paid a visit to a Vice Governor of Guangdong Province for discussions on this project. At the same time, the French Embassy Trade Attache in Peking contacted the Ministry of Electric Power, to enquire how French firms could participate in this project. When the Ministry informed him that the French Equipment originally quoted for the Sunan Nuclear Project was too expensive and
that the financial terms were not all that attractive, the Trade Attache said that they were prepared to lower the price and to offer 85% loan at 3% interest and no interest at all for the remaining 15% which could be paid back in cash in stages.
A Swiss and German consortium employing some 10 to 20 experts, had worked out a scheme, based on the German nuclear project in Brazil, and offered a package to KEC. The repayment of the loans was to have been covered by the export of minerals and loans would be at 6% interest.
Hitachi's office in Guangdong had also contacted KEC to make enquiries on their possible participation and suggested that they could supply the whole plant including NSSS.
However, as there was not enough time and rather apprehensive about the "favourable" terms of payment, KEC did not follow up on these various
offers.
The French, Japanese and possibly the Americans, have made great strides in their trade with China, in step with advances made in the political sphere. This has, however, not happened in the case of the UK in spite of the excellent political relationship between China and the UK. In other words, there is a great imbalance between the political relationship and the trade relationship of the two countries (UK and China). The nuclear project in Guangdong offered an opportunity where such a situation could be remedied.
>