CONFIDENTIAL
сс нка
HK. GD.
равня
Foreign and Commonwealth Office
HICK 166/1
RECEIVED IN REGISTRY NO. 51
19 SEP 1980
DESK OFFICER
INDEX
PA
London S.W.1
REGISTRY Action Taken
15 September 1980
Awiała
120
கூ
Richard Brown Esq
Department of Industry
Ashdown House
123 Victoria Street
LONDON SW1
Dea Richard,
GUANGDONG NUCLEAR PROJECT
1. After Gordon Manzie's meeting on Friday I promised to let you have contributions to the line to take which is being prepared for the Foreign Secretary's use in Peking, and a slight revision of the passage of your paper dealing with liabilities. I am inclined to think that the paper should also include a short passage on non-proliferation since it will form the basis of the background briefing for Lord Carrington.
Line to Take
2.
On accident liability I suggest the following:
"We recognise that this raises important questions which will need to be discussed at a later stage between our two governments."
On nuclear non-proliferation I suggest the following:
"This will be primarily a matter for the government of the supplier of the nuclear reactor. We would of course wish to take part in any discussions on this subject, but we would not expect more restrictive conditions than would be likely to be required by other governments."
3. On your paper, I suggest that you replace the passage on liabilities with the following:
"Most of the risks associated with the Guangdong project can be covered by commercial insurance. HMG may have to accept some financial responsibility in the event of a major nuclear accident: the Guangdong project is essentially a joint venture and the PRC might insist on shared liability as part of the price for preferring equipment and other supplies from the UK. If this price has to be paid we should negotiate an agreement with the PRC whereby:
CONFIDENTIAL
/(a)