FED
CONFIDENTIAL
To arrange furluer
action. Rugh 14/mmmm
Sir E Youde
Yoyd.
Secrfany & Stake
AKK 16611
PreateIVED IN REGISTRY NO. 51
2 6 AUG 1980
94
النصرة
DESK OFFICER
INDEX
PA
CC: FED PEUSTRY JNU
Action Takan
PEKING PROPOSAL FOR
SECRETARY OF STATE'S VISIT TO HONG KONG AND PEKING: NUCLEAR POWER STATION IN GUANGDONG
Problem
1. Sir Lawrence Kadoorie, Chairman of China Light and Power (CLP),
may be trying to get involved in the Secretary of State's visit,
over the question of the political implications of the planned
nuclear power station in Guangdong Province.
Recommendation
2. I recommend that the Secretary of State sees Sir Lawrence Kadoorie
briefly when he is in Hong Kong and that you write to the Governor
on the lines of the attached draft. I also submit a draft telegram
to the British Trade Commission.
Background
3. Following agreement to install an electricity link between Hong
Kong and the Chinese Province of Guangdong, the Chinese Guangdong
Electricity Company (KEC) proposed a joint study with CLP into the
feasibility of building a nuclear pressurised water reactor (PWR)
power station in Guangdong to be financed through the sale of elec-
tricity to Hong Kong. CLP asked HMG for technical support in carrying
out the study. Ministers endorsed UK industrial official involvement
and advice has been provided through the attachment to the CLP
negotiating team of a senior official from the UK Atomic Energy
Authority (Dr Walter Marshall).
4. The studies have proceeded satisfactorily and Chinese interest in
cooperation with the UK appears to have increased, although they have
made no firm undertaking. Any arrangement would involve collaboration,
probably with the French or with Westinghouse, as the UK does not have
/a total
CONFIDENTIAL