CONFIDENTIAL
VISIT OF THE SECRETARY OF STATE TO CHINA : GUANGDONG NUCLEAR PROJECT
DSR 11C
POINTS TO MAKE
1.
British government have followed with close attention discussions in Guangdong. See project as one of immense
significance to UK/Hong Kong/China relations. First nuclear power station in China: a most important example
of cooperation between Guangdong and Hong Kong: and potentially largest ever commercial deal in China involving
British interests.
2. On British/Hong Kong side negotiations have been conducted principally by China Light and Power (Kadoorie) supported by technical assistance and expertise of UKAEA (Dr Walter Marshall). Understand that Guangdong negotiators have sought closer identification with project
on part of British and Hong Kong governments.
If they
are seeking reassurance of British and Hong Kong governments' support, this can be firmly given.
3. Ministerial colleagues will wish to know that Chinese government (Peking) attaches same priority to project as Guangdong authorities. Would therefore welcome statement
of Chinese attitude.
4.
[Depending on answer to 3 above] Glad to find China shares UK view of project's importance. Many technical,
safety, financial questions. Suggest team of experts including British officials visit Peking and Guangdong soon
to follow up. Meanwhile will report to Cabinet.
5. [If asked about equity investment by the British and Hong Kong governments] An unusual suggestion. The British government (while a shareholder or owner of many industries in UK) does not normally invest overseas. Nevertheless prepared to consider proposal if Chinese really attach importance to it and in view of project's significance.
But decision depends on several factors.
6.
[if pressed on
(a)
nuclear non-proliferation
(b) credit facilities
(c)
accident liability
...passages to be supplied]
CONFIDENTIAL
S4200(22454) DD.0532198 300M 7/79 GWB LTD.GP.870