13.
Mr. Lu then asked how we should proceed to put the
Government authorities in touch with each other.
I said it was a pity Lord Carrington's visit to Beijing
had had to be cancelled but suggested that contacts
could be made either direct with the Governor in Hong
Kong or through the British Ambassador in Beijing,
who no doubt was fully conversant with the subject.
Mr. Lu asked whether an approach should be made to
countries other than the U.K., to which I replied
that in the light of the political implications
involved between the Chinese Government, the Hong Kong Government, and the U.K. Government, I felt that at this stage it was best to confine talks to these three.
The foundation would have to be built on their agreement
and later the building, i.e. choice of the nuclear island, etc., was the time to consider other international
contacts.
14.
Mr. Lu said he had seen Dr. Marshall who had told him
that the Americans would insist on the inspections
required by the Non-Proliferation Treaty. China would not agree to this consequently if this was so Westinghouse
would be out of the running.
15.
Were we aware of Dr. Marshall's views and did we agree
with him. I replied that Dr. Marshall was a world
expert in his field and that he was probably right in what he had said, this particularly in the light of the coming American election.
16.
Mr. Lu said we should talk to various suppliers. I agreed that we should listen to what they had to say; competition would be to our advantage but in my opinion
the French were in the lead in so far as nuclear reactors
(PWRS) were concerned.