3
CONFIDENTIAL
a
b
C
d
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f
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60
GEC seeking to secure a balance of advantage in the supply of hardware from UK and French sources;
The agreement being exlusive, thus ruling out an all-French proposal;
The agreement not precluding a deal with Westinghouse, if the Chinese reject the Anglo-French proposals;
The possibility of future dual sourcing of fuel by BNFL being pursued (with the support of CLP and the Hong Kong Government if necessary);
BNFL continuing discussions with Westinghouse;
Discussions with the French on safety issues being pursued;
The National Nuclear Company discussing their possible involvement in the project with Framatone with a view possibly to obtaining sub-contracting orders for UK suppliers of reactor components.
I agree with the advice of officials and I would welcome your early agreement and that of colleagues to my authorising GEC to go ahead with their agreement with Framatone on the basis proposed. It would be helpful to have your comments by close of play on Wednesday 25 February in time for the next stage of officials' discussions in Hong Kong on the Castle Peak "B" Project.
I am copying this letter to the Prime Minister, Geoffrey Howe, John Biffen and David Howell.
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