GRS 250

CONFIDENTIAL

DESKBY 280900 Z

CONFIDENTIAL

FM HONG KONG 280805Z JULY 8Ø

TO IMMEDIATE F C C

TELEGRAM NUMBER 947 OF 28 JULY

INFO IMMEDIATE PEKING

MY TELNO 941: GUANGDONG NUCLEAR PROJECT

HKK 16614

RECEIVED IN REGISTRY NO, 51 2 8 JUL 1980

DESK OFFICER

INDEX

No

PA

IR

REGISTRY

Action

akan

ON LEAVING KADOORIE SENT ME A COPY OF THE NOTES HE HAS PREPARED FOR HIS MEETING WITH THE PRIME MINISTER. THE FULL TEXT IS IN BTC TELNO INDUS 145.

2. AS ANTICIPATED, KADOORIE INTENDS TO CONCENTRATE ON THE POLITICAL SIGNIFICANCE OF THE PROJECT. UNDERSTANDABLY HE HOPES THAT HE IS ONTO SOMETHING OF IMPORTANCE AFFECTING HONG KONG'S FUTURE. HE PROBABLY ALSO BELIEVES THAT EMPHASIS ON THE POLITICAL IMPLICATIONS OF THE PROJECT WILL HELP TO GET THE ASSISTANCE HE THINKS HE NEEDS FROM HMG AND THE H K GOVERNMENT

TO BRING IT TO FRUITION.

3. EARLIER TELEGRMS WILL HAVE MADE IT CLEAR THAT WE TOO SEE POTENTIALLY SIGNIFICANT POLITICAL SPIN-OFF FROM THE PROJECT

IN TERMS OF LONG TERM CROSS-BORDER CO-OPERATION AND

ALL THAT COULD IMPLY FOR ERODING THE SIGNIFICANCE OF 1997 (ALTHOUGH IT COULD NOT SOLVE THE PROBLEM ITSELF). BUT I AM LESS CONVINCED THAN KADOORIE THAT THE CHINESE, EITHER IN THE

CONCEPTION OF THE PROJECT OR NOW

I THINK THEIR PRIME OBJECTIVES ARE TO LEARN ABOUT CIVIL NUCLEAR TECHNOLOGY AND TO INCREASE ELECTRICITY SUPPLIES. SITING THE PLANT NEAR HONG KONG GIVES THEM ACCESS TO THE TECHNOLOGY AND THE MEANS OF PAYING FOR IT. THEY APPEAR TO BE ACCEPTING THE NEED FOR AGREED SALES AND AMORTISATION OF LOANS OVER A LONG PERIOD. WE MUST ASSUME THAT THEY HAVE APPRECIATED THE POLITICAL SIGNIFICANCE OF THIS. BUT WE CANNOT YET BE CERTAIN HOW CLEARLY NOR AT WHAT LEVEL THEY HAVE FOCUSSED

ON THIS ASPECT.

4. FCO PLEASE COPY TO DO, DOT AND D/EN.

CATER

FILES

HKED

F.ED.

INC.

TRED

не р. повекеу Me DONAEd

(ADVANCED AS REQUESTED)

Colres To

HONG KONG GOUT OFFICE

ADDL

LONDON

DISTRIBUITION

GUANG JONE NUCLEAR

CONFIDENTIAL

75,

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