CONFIDENTIAL

HKK 166/1

است

Reference

Mr Williamson

illiams

Mr Clift

AKK 1661

RECEIVED IN REGISTRY NO. 51

24 FEB 1981

DESK OFFICER

REGISTRY

pa

71812

GUANGDONG NUCLEAR PROJECT INDEXEFTING AT ASHDOWN HOUSE, 1445 ON 13 FEBRUARY

AW 24/2

1. Mr Clift will wish to be aware of the following in respect of tomorrow's meeting.

2.

The purpose of the meeting, which will include representatives from GEC and the AEA, is to hear Mr Manzie's report on the dis- cussions with the French on 9 February. It will be followed (at approximately 1545) by a meeting of officials to decide on the form of a progress report to Ministers.

3. The talks clearly went well. The French showed themselves eager for an early agreement between GEC and Framatome on the basis of a French nuclear island and British conventional equipment, though they resisted the idea of a UK share in fuel supply. This is expanded in Mr McLaren's draft telegram to BTC Hong Kong (attached).

4. Mr McLaren concludes that Mr Manzie will now seek prior Ministerial approval for a GEC/Framatome agreement, subject to a satisfactory outcome of commercial discussions and provided that alternatives remain open should a UK/French collaboration prove unacceptable to the Chinese.

5.

JNU and the Department of Energy will oppose this line at the second meeting. They believe it would be premature to ask for a Ministerial decision before GEC and Framatome have fully deliniated how the project and supply of fuel will be split. They would see a GEC/Framatome agreement subject to Government approval later as better tactically.

12 February 1981

Shi

A W Friar

Hong Kong and General Department

Thank you. See record by Mr. Mcfaren

14/2

CODE 18-77

SS 8/78

CONFIDENTIAL

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