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Thus, it appeared to Dr Marshall that not only were there technical

aspects to be considered but that the supply of the NSSS was now very much a

po tical matter. He wondered whether steps should be taken to put "feelers" to

the new Reagan Administration to discover the view that would be taken regarding

the supply of hardware from the States but in any case he warned that it would

be some months before any clear-cut view would be forthcoming.

Dr Marshall asked Lu Ying for his reaction to this alternative to a

French supply and also whether Lu Ying felt it appropriate for preliminary

enquiries to be made regarding the new American Administration's view. Once

again, Lu Ying would not give any definite answers but spent a long time in

private conversation with the interpreter, Geoffrey Lu.

Dr Marshall also tried to get some response from Lu Ying by suggesting

that if, in fact, the Chinese needed a very rapid decision then there was no

option but to buy the NSSS from the French but if, in fact, there was time

resulting from the deliberations which would now take place both with the

Guangdong Provincial Covernment and with the Central Government in Peking, then

it might be sensible to keep open the option of an American supply. At this

point, Lu Ying made a very deliberate statement which went something as follows:

that whatever decision is made on this project, British interests would be taken

fully into account. We gained the impression that this general statement was

one that he could make positively because he had been authorised to do so.

Although a number of attempts were made to get Lu Ying to give his opinion,

it was fairly obvious that he had no power to do so but commented that it was

likely that one of the Deputy Governors of the Guangdong Province would be

present at the banquet which would follow the signing ceremony due to take place

on the Thursday and that Dr Marshall should address his questions to the Governor. Lu Ying further said that he hoped to be at the banquet but if, in fact, he was not present because he was prevented by other business he gave his apologies

in advance. From this we assumed that he intended to report to the Deputy

Governor the details of the conversation with Dr Marshall and that if his report

and advice were not accepted then he would not be present, but if his advice was

accepted by the Deputy Governor then he would be present at the banquet. In the

event, he turned up to the banquet.

{f33 a;17

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