CONFIDENTIAL
Reference
HICK 166/1
RECEIVED IN REGISTRY NO. 51
19 SEP 1980
рже
f 16.9.
Mr Morrice, HKGD, K247
cc Mr Roberts, JNU, E02
DESK OFFICER INDEX
PA
REGISTRY Action Taken
Awyıla
117
GUANGDONG NUCLEAR
1. I am not sure how much more we can do to improve the DOI paper. It is not in the form which we would submit in the FCO but we must accept that it is for their Secretary of State. This said, it does not properly address the most urgent question, ie the line which Lord Carrington should take in Peking. I have considered where this might best be inserted and believe that the second paragraph of page 3 is unnecessary and could be replaced by the following:
2.
'Although the Governor of Hong Kong now firmly believes that the Chinese are serious, we have faced two loS difficulties:
(a) the lack of any direct contact between HMG officials
and those apparently responsible for the project in Guangdong;
(b) the lack of any firm evidence that the central
leadership in Peking approve of the project (though there have been hints to this effect).
Fortunately we now have two good opportunities to probe Chinese intentions. A middle-ranking member of the Guangdong Provincial Government who has been closely involved in the project is to visit the UK from 18 September; and the Foreign Secretary will be able to sound out Chinese leaders in Peking. We should make the most of these two opportunities.'
The paragraph on page 5 about equity involvement could be improved. I suggest that the first five words be replaced by: 'We have been told by CLP that the Guangdong authorities may.... A further sentence might be added at the end of the paragraph: 'It may be possible to probe Chinese thinking on this during the Foreign Secretary's visit and/or the Guangdong official's inward visit.'.
3.
*
Finally the conclusion on page 6 might be recast to read: 'The immediate steps are:
To use the visit of the Guangdong official to probe Chinese thinking further, in order to establish direct contact with the Guangdong authorities.
To use the visit of the Foreign Secretary to try to ascertain the Peking Government's attitude."
Officials should follow up the Foreign Secretary's visit with early discussions to explore issues in detail;
Meanwhile action should proceed to clarify the industrial/ management structure best suited to progress UK interests;
a report should be prepared for Ministers to take substanti decisions consistent with the timescale of the project.