OLENT
132
TALKS WITH CHINESE FOREIGN MINISTER : 1 AND 2 OCTOBER 1980
BRIEF NO
: GUANGDONG NUCLEAR PROJECT
POINT TO MAKE
1.
HIKK 1661
RECEIVED
6 OCT 1980
Action Taken
Have been following discussions about a nuclear power plant in Guangdongleased at current visit of Guangdong Provincial delegation to study inter alia UK nuclear industry.
$23100
2. The electricity is needed by Guangdong and Hong Kong and a major joint venture to produce it makes sense. Participation or help from HMG has been suggested. Not time to go into detail now. But can take it project has full support of Chinese Government?
Would like Ambassador to discuss in Peking; whom should he see?
3. [If the Chinese confirm central Government support] HMG share Chinese view of
project's importance. Hope to see big British content (though not for PWR reactor island).
Many technical, safety, commercial and financial questions. Next step is for the two
electricity companies and the Chinese and British Governments to examine the feasibility study. Thereafter might wish to suggest team of British officials visit Peking and Guangdong to follow up]
4. [If asked about equity investment by the British and Hong Kong Governments] An unusual suggestion. The British Government does not normally invest overseas. Nevertheless prepared to consider proposal if Chinese really attach importance to it and in view of project's significance.
5.
[If pressed on:
(a) nuclear non-proliferation: primarily a matter for government of supplier of the
nuclear reactor.
We would of course wish to take part in any discussions, but
would not expect more restrictive conditions than likely to be required by other
government;
(b) accident liability: we recognise this raises important questions which will need
to be discussed at a later stage between our two governments;
(c) credit facilities: terms available from UK will be at least as favourable as those
on offer from elsewhere. 1
CONFIDENTIAL