GPS 2000A
CONFIDENTIAL
CONFIDENTIAL
FM B T C HONG KONG 100205Z SEP 80
TO PRIORITY DOI
twista
TELEGRAM NUMBER INDUS 171 OF 10 SEPTEMBER
NIR
YOUR INDUS 260 OF 8 SEPTEMBER.
GUANGDONG NUCLEAR.
AUD SIDEN
FOLLOWING IS RECORD OF MEETING AT GOVERK
n
VJ
VIRGO
0861 DAS SI
PA
XJCNI
20
HOUSE ON 29 AUGUSTI COPY OF WHICH WAS SENT TO HAVELOCK BUT UNLIKELY TO REACH HIM BÝ
YOUR DEADLINE.
BEGINS:
AKK Hoott
THE GOVERNOR WELCOMED DR MARSHALL TO THE MEETING AND ENQUIRED ABOUT
THE MOST RECENT MEETING BETWEEN THE KWANGCHOU ELECTRIC COMPANY (KEC) AND CHINA LIGHT AND POWER COMPANY (CLP). DR MARSHALL SAID HE WOULD ALSO LIKE TO COVER THE QUESTIONS OF THE SAFETY ORGANISATION EVENTUALLY REQUIRED FOR THE PROJECT AND LIAISON ON THE PUBLIC RELATIONS ASPECTS OF SAFETY IN HONG KONG.
AUGUST MEETING
2. DR MARSHALL STATED THAT THE MEETING HAD BEEN GENERALLY FRANK AND FRIENDLY ALTHOUGH NOT STRICTLY NECESSARY. IT HAD RESULTED IN THE SETTING UP OF DETAILED PRESENTATIONS FOR THE CHINESE BY THE MAIN CONTENDERS, WESTINGHOUSE, KRAFTWERK UNION AND FRAMATOME. IT WAS CLEAR FROM HIS OWN MEETING WITH THE COMPANIES AND FROM THE PRESENTATIONS ALREADY GIVEN BY THE FIRST TWO THAT THEY HAD ACCEPTED THAT THEY COULD NOT HOPE TO SEEL THE ENTIRE REACTOR TO CHINA BUT MUST AIM AT PROVIDING THE NUCLEAR ISLAND WITH THE BALANCE OF THE PROJECT COMING FROM THE UK. THERE WERE STRONG INDICATIONS THAT WESTINGHOUSE WAS EMERGING AS KEC'S FIRST CHOICE. WESTINGHOUSE COULD PRODUCE A REACTOR THAT WOULD SATISFY THE NII: AND THE US STATE DEPARTMENT WOULD FIND A FORM OF WORDS WHICH WOULD GET AROUND PROBLEMS WITH THE NUCLEAR NON-PROLIFERATION TREATY, CHENG KIANG HAD IMPLIED IN AN INFORMAL EXCHANGE THAT IF REAGAN WAS ELECTED WESTINGHOUSE WOULD BE OUT OF THE RACE AND WHILST ACCEPTING THE GOVERNOR'S INTERPRETATION THAT THIS WAS INTENDED TO INFLUENCE VOTES RATHER THAN DEBAR THE COMPANY, DR MARSHALL SAW THIS AS AN INDICATION OF PEKING'S DIRECT INVOLVEMENT IN THE PROJECT.
3. THE SIZE OF THE PLANT HAS BEEN RAISED BY THE CHINESE WHO NOW SEEMED TO BE MOVING TOWARDS SOMETHING LARGER THAN THE TWO UNIT 900 MEGAWATT PLANT PREVIOUSLY ENVISAGED. THE FIGURE OF 1150 MEGAWATTS HAD BEEN MENTIONED AND THIS WOULD HAVE IMPLICATIONS FOR
THE GEC TURBINE DESIGN.
4. TWO ADDITIONAL POINTS INDICATED A STRONG AND DIRECT INTEREST FROM PEKING. FIRSTLY KEC HAD INSISTED, IN THE FACE OF CLP PLEAS OF IMPOSSIBILITY, ON THE COMPLETION AND PRESENTATION OF THE
FEASIBILITY STUDY TO PEKING BY THE END OF OCTOBER. SECONDLY, DR MARSHALL HAD BEEN DISCOURAGED FROM DETAILED DISCUSSION OF SAFETY
CONFIDENTIAL
/ ASPECTS
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