BRIEF NO 8(b)
ESSENTIAL FACTS
OBJECTIVES
(a) To reiterate HMG's strong interest in project;
(b) To indicate British willingness to work with French
(or Americans if that is Chinese preference);
(c)
(d)
To obtain an authoritative indication of Chinese
intentions with regard to project and choice of
suppliers;
To obtain Chinese recognition of importance of substantial British participation, if possible in a form which can be quoted to French or, better,
used publicly;
(e) To confirm Hong Kong's interest in project, providing
supply is economic.
BACKGROUND
1. Proposals for construction of nuclear power station in Guangdong province go back several years. In early 1979
Guangdong Electricity Co (KEC) proposed to finance purchase of hardwear from sale of 50% of electricity produced to China Light and Power (CLP) in Hong Kong. Joint Executive Committee
of KEC and CLP established early 1980. Feasibility study
completed and delivered to Chinese (and Hong Kong Government)
in December 1980. UK involved in study through participation
of Dr Walter Marshall1 (UKAEA) as technical adviser to CLP.
2. Feasibility study recommended 2 x 900 MW PWR station,
foreign exchange costs to be met through electricity sales to
Hong Kong. Preference expressed for Chinese and British manufactures for conventional equipment. Three potential
reactor suppliers identified: Framatome (France), KWU (FRG), Westinghouse (US). French appear to have favoured position following Giscard's visit to Peking in October 1980 when he was given oral undertaking that France would be preferred supplier of China's first nuclear power station.
CONFIDENTIAL
/3.