his Secretary of State to agree to a partnership with the French, subject to

the following conditions :-

nothing should stop BNFL holding talks with Westinghouse in case

the Chinese preferred them to Framatome.

we should repeat to the French our wish to participate in the

supply of fuel for the second and subsequent charges.

he would like Hong Kong as well to bring pressure on the French

to enter into some form of dual sourcing.

Mr McLaren said that a further condition should be that GEC should be free to

talk with Westinghouse if the Chinese chose them instead. Mr Manzie said that

he was able to accept those conditions; the paper should also adequately reflect

the views of Dr Marshall, and should contain a reference to equity saying that

the topic cannot yet be discussed the the proposed agreement with the French

raises no new aspects of equity participation.

Mr Manzie concluded that he wanted to put a submission to Ministers recommending

that GEC be given approval to enter into an exclusive arrangement with

Framatome.

Mr Manzie also agreed to telephone Derek March to discuss with him how best

Sir Lawrence Kadoorie could be kept informed.

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