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Meeting with Sir Lawrence Kadoorie and Sir Sidney Gordon

This particular meeting was somewhat unstructured because, whilst

Dr Marshall attempted to report back to Sir Lawrence Kadoorie the essential parts

of his discussions with the Chinese, Sir Lawrence Kadoorie repeatedly broke the

flow of Dr Marshall's presentation to comment and indicate his own personal

views on the situation.

From the point of view of Kadoorie and Gordon, there was obviously some

doubt that Lu Ying has any important role to play in this project. It was said

that Lu Ying is the Head Secretary of all the Secretaries in the Guangdong

Administration, each Deputy Governor having a Secretary, that Chen Gang reports

to Shih and that Shih, in their opinion, is equal to Lu Ying. Kadoorie said

he sensed at the banquet the previous evening that the Chen Gang/Shih faction was somewhat uneasy about the Lu Ying connection. Dr Marshall said he thought

the unease was connected with Mr Potter's role, and his appearance at the banquet,

which they did not understand any more than he did himself. He reminded Kadoorie

that Iu Ying had tried to get Potter to the signing ceremony but that Chen Gang had, properly, resisted that.

In spite of his caution about Lu Ying, Sir Lawrence said that it would be improper to drop the contacts with Ju Ying absolutely but that very great care should be taken. Dr Marshall agreed.

Dr Marshall then outlined again his thinking on safety and NII guidelines and followed with a detailed description of the breakdown of components for a nuclear station coupled with an estimated percentage cost for each component.

He repeated the analysis he had given to the Governor earlier.

Dr Marshall reminded Kadoorie that he had advised right at the outset of the project that there was a significant difference between asking for assurances about safety and asking for assurances concerning British safety standards, ie NII guidelines. Kadoorie replied that he remembered that discussion, he had it

clearly in his mind and understood the distinction. He also remembered that it

was his decision to insist on the application of British safety standards. He assumed from Dr Marshall's earlier explanations that this would not be a deciding

factor in the choice of nuclear island vendor. Dr Marshall agreed that that was his previous advice and that he had consistently judged that Westinghouse or KWU

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