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CONFIDENTIAL
Mr
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Secretary of State for Industry
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DEPARTMENT OF INDUSTRY
25.2
ASHDOWN HOUSE
123 VICTORIA STREET
LONDON SWIE 6RB
TELEPHONE DIRECT LINE 01-212
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& 25/2
SWITCHBOARD
23 February 1981
See
KCMG MC
The Rt Hon The Lord Carrington Secretary of State for Foreign and
Commonwealth Affairs
Foreign and Commonwealth Office London SW1
Hkk 166|1
RECEIVED IN REGISTRY NO. 51
03 MAR 1991
3301
01-212 7676
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FEB
PA
PS/LFS ps/her Blakes PS/FUS
Chivet Cloak Lod Brake Mr Bonelt
Mr Braithwai
BSI
JNV
DESK OFFICER
INDEX
PA
REGISTRY
Action Taken
HKG O
WED
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AW 3/3
Jan Para.
GUANGDONG NUCLEAR POWER STATION
Following my letter to you of 19 December 1980, we agreed to sound out officially the French attitude to a joint approach on the Guangdong nuclear power station project, while keeping open the door to partnership with Westinghouse of America.
Accordingly, officials from the Departments of Industry, Trade, Energy and the FCO met French officials in Paris on 9 February. The French recognised the significance of the Hong Kong connection and agreed, in principle, to the conclusion of commercial arrange- ments under which Framatone would supply the nuclear island and GEC the conventional island, including turbine generators. French were prepared to consider some cross sub-contracting for equipment for the two islands but they strongly resisted any UK share in the fuel supply, on the grounds that this was tied to the responsibilities and obligations of the nuclear island supplier. Officials do not consider this is the last word on fuel supply and will continue to press for a share.
The
At the commercial level, GEC have had further discussions with Framatone. A draft agreement has been produced which GEC are prepared to sign, but they require Government approval before doing so. The draft agreement allows either party to scrap their exclusive commitment, if the Chinese seek separate bids for the respective islands. Meanwhile, there is considerable pressure from Framatone, China Light and Power (CLP) (the potential joint customer), and strong advice from the Governor of Hong Kong and HM Ambassador to Peking in favour of a deal with the French.
At the moment, all the signs are that the Chinese have not reached final decisions about nuclear power. Indeed recent events suggest that economic constraints are putting many investments