DSR 11C
break into this, and the French fuel manufacturers CEA have
accepted informally that it would be feasible for British
Nuclear Fuels Ltd (BNFL) to participate.
To secure this however
will be uphill work. We shall probably need to enlist Chinese
support. We can argue that, to guard against possible future
supply interruptions, diversification of fuel supply would be
important. The UK, with its close relationship with Hong Kong,
will have a greater interest than other potential suppliers
in ensuring continuity. The British also have an interest in
the provision of enrichment services by Urenco. (Although
these would be a logical complement tc provision of fuel
fabrication services' by BNFL they could also be pursued
independently. Even if we fail to make headway with the French
over fuel fabrication, Urenco's interest will still need to
be pursued vigorously.)
Anglo-Chinese official contracts on Guangdong
jo. The bulk of discussions to date have been between personnel
of CLP and KEC, but contacts have also taken place between the
Nuclear Power Company (NPC) and Chinese government officials
in Peking and Canton; and between Dr Walter Marshall and
officials in Canton. These have resulted in confusing and
conflicting information.
We therefore attach importance to
obtaining authoritative guidance on Chinese Government
intentions.
10.
Following the cancellation of Lord Carrington's planned
visit in October (when we had hoped to sound out Chinese views)
HM Ambassador discussed the nuclear project in general terms
with Premier Zhao Ziyang and Vice Premier Gu Mu. Zhao confirmed
that Guangdong had delegated authority to pursue the proposal.
The Chinese Government now favoured starting a nuclear power
/programme
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