ASPECTS OF THE WESTINGHOUSE DESIGNS APPARENTLY BECAUSE CENTRAL AUTHORITIES IN PEKING HAS NOT YET COMPLETED A REVIEW OF SAFETY STANDARDS AND SYSTEMS. THIS WAS ALSO GRATIFYING IN THAT IT ILLUSTRATED THAT THE CHINESE WERE AWARE OF THE NEED FOR UNIFORMITY

IN THIS FIELD.

TIMING OF STATEMENT OF INTENT.

5. THE GOVERNOR ASKED WHETHER THE QUESTION OF FINANCE HAD BEEN RAISED AND WHETHER OR NOT IT WAS CLEAR AT WHAT POINT CLP WOULD BE ASKED TO STATE CLEARLY THE SIZE AND METHOD OF FUNDING: IT WAS IMPORTANT THAT HMG BE APPRAISED OF THE DATE BY WHICH A CLEAR STATEMENT OF INTENT WOULD BE REQUIRED. IF HMG BACKED OFF ON THE FINANCING SIDE THE CHINESE WOULD TAKE IT BADLY. DR MARSHALL REPLIED THAT THIS WOULD BE DEMANDED AT THE NEXT EXECUTIVE MEETING ON WEDNESDAY 22 OCTOBER, BUT CAUTIONED THAT THE STATEMENT WHILE SUFFICIENTLY POSITIVE TO CONVINCE WOULD NEED TO LEAVE ROOM FOR MANDEURVE WHEN THE DETAILED NEGOTIATIONS BEGAN INTHE EARLY SPRING OF 1981. THE GOVERNOR NOTED THAT THE TIMING OF LORD CARRINGTON'S VISIT WAS TIMELY AND WOULD ENABLE HIM TO BE THOROUGHLY BRIEFED BEFORE THE CRUCIAL CABINET DECISION WHICH MUST COME IN MID-OCTOBER. SBTC STATED THAT THE MAIN CABINET PAPER WOULD BE PREPARED BY MID-

SEPTEMBER.

6. FOLLOWING A SHORT DISCUSSION OF PRELIMINARY WORK DONE BY THE SAFETY DIVISION OF THE ATOMIC ENERGY AUTHORITY'S (AEA) SAFETY DIVISION ON THE RELATIVE SAFETY OF PROPOSED SITES, IT WAS AGREED THAT S FOR E SHOULD LIASE WITH DR MARSHALL'S NOMINEE AND ENSURE THAT THE LATTER HAD ADEQUATE DATA ON WHICH TO BASE SAFETY ASSESSEMEN NOTHING SHOULD BE SAID PUBLICLY ON SPECIFIC SAFETY PRECAUTIONS

FOR A LONG TIME.

7. DR MARSHALL AGREED THAT A WITHDRAWAL BY UK AT THE MOMENT WOULD BE A GREAT SET-BACK AND WOULD RESULT IN ENORMOUS LOSS OF FACE FOR SIR LAWRENCE KADOORIE BUT AFTER A STATEMENT OF INTENT IT WOULD CAUSE A SEVERE DIPLIMATIC RUMPUS. THE UK MUST BE PREPARED FOR SOME STIFF BARGAINING WITH ABLE NEGOTIATORS. IN THIS CONTEXT THE GOVERNOR ASKED WHETHER THERE WOULD BE SCOPE TO NEGOTIATE NOT SIMPLY ON THE QUESTION OF EQUITY AND EQUIPMENT BUT ALSO ON SAFETY: IT WOULD BE A USEFUL NON-FINANCIAL WEAPON TO USE WHEN TALKING FINANCE. AFTER THE POPULATION SHIFTS PLANNED OVER THE NEXT DECADE HAD BEEN OUTLINED TO DR MARSHALL, HE AGREED THAT IT WOULD BE A LEGITIMATE POINT TO RAISE TOGETHER WITH GUARANTEES OF SECURITY OF SUPPLY. THE GOVERNOR FELT THAT THEY WOULD ALSO BE USEFUL TOOLS, FOLLOWING A STATEMENT OF INTENT, BECUASE OF THEIR IMPLICATIONS FOR THE CHOICE OF SUPPLIER.

SAFETY ORGANISATION.

8. DR MARSHALL OUTLINED THE HISTORY OF HIS INVOLVEMENT IN THE PROJECT AND STATED THAT THE CHANGES IN THE SHAPE OF THE CONSORTIUM HAD IMPLICATIONS FOR THE NATURE AND SCOPE OF THE SAFETY DIVISION'S RELATIONSHIP WITH THE PROJECT AT THE PLANNING, CONSTRUCTION AND OPERATING PHASES. THE RELATIONSHIP UNDER THE PREVIOUSLY ENVISAGED

CONFIDENTIAL

2

/ CLP / KEC

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