SIR ELLY KADOORIE & SONS.
CONFIDENTIAL
Fage
Date
February 27, 1981
7)
What is more, the GPC has insisted on the personal participation of both myself and Mr. W.F. Stones, in whom they place their trust and confidence. The strength of these personal relationships, built up during negotiations for the supply of power by CLP to the GPC in March, 1979, must not be underrated.
8)
9)
Page 2 Para. 3 Dr. Marshall states that:
'A key issue is whether the project will place a contract
for the nuclear island as a whole or separate contracts for the NSSS and BONP'
What is omitted from Dr. Marshall's paper is that there are a number of parties involved, notably the PRC, the Guangdong Provincial Government, the Hong Kong Government, the UK Government, the suppliers of the nuclear and conventional islands and, of course, the two utilities; GPC and CLP.
My colleagues and I are firmly of the opinion that:
10)
i)
The French are in the lead
ii)
11)
iii)
British interests will have achieved a major success if they can persuade Framatome to agree to a Franco- British package rather than for them to put in a separate quote for the complete Nuclear Power Station.
The French will not agree to such a Franco-British package, UNLESS they provide the nuclear island as a whole i.e both NSSS and BONP.
Page 3 Para. 3 Dr. Marshall's statement that:
'It is this integration of the BONP with the NSSS that determines the safety characteristics of the plant...'
exactly expresses the views held by both the Chinese and the French.
12)
The Chinese fully intend that the supplier of the nuclear island must be held totally responsible, and the French have stated categorically that they will not accept this responsibility unless they supply both the NSSS and the BONP. We support this view.
13)
Page 3 Para. 4 Dr. Marshall's statement that:
'The Chinese reaction to the GEC presentation was sceptical...
is correct. In fact, GEC was dropped from the list of contractors being considered and it was only after lengthy discussion that Mr. Stones persuaded the Chinese to reinstate GEC on this list.
14)
Page 3 Para. 5 Dr. Marshall's statement that:
'We have no evidence that China can organize itself to produce this civil work on time and to quality'
is correct, which is another good reason why the project management team should engage an Architect/Engineer consultant, such as Bechtel.
15)
Page 3 Para. 6 Dr. Marshall's statement that:
A
The French'would not want to get involved in any discussions which concern a BONP to meet different safety standards'
does not coincide with the information we have received.
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