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/not

A

facilities, and it appears that the most we could expect

would be an assurance that no materials or equipment would

be diverted to military use, which the Chinese were

previously prepared to give the French. Since China is

already a nuclear weapon state the provisions of the NPT do

not apply and there would be no valid case for criticism of

a sale without safeguards inspection. We have decided not

to raise non-proliferation questions with the Chinese at this

stage but will draw on the following points if they raise

the subject with us:

(i)

(ii)

*

We would expect to require more vigorous non-

proliferation conditions than our competitors;

There are no nuclear proliferation issues which

would affect the continuation of discussions between

KEC and CLP;

(iii) In any case if the Nuclear Core is supplied from

outside the UK the question of non-proliferation

assurances will be primarily for the supplier

4.

country (although we would expect to be involved in

discussions).

We believe that the best way to advance UK interests is

to provide UKAEA support for the feasibility study in order

to influence the final decision of the study in the UK's

favour. The UKAEA representatives on the study must there-

fore take great care to present themselves as impartial.

5. Mr Parry has previously asked ten Parliamentary Questions

on this subject. They were answered together in a written

answer from Mr Blaker on 2 June.

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