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get away with giving better terms for the Alsthom bid). M Joutard said that if it came down to a joint project then clearly ECGD and DREE would need to work out a common position. If it came down to an Alsthom bid against an Anglo/French bid then there would also have to be discussions.

5. M Joutard ended by saying that M Jobert would be going to Peking from 5-11 November. The object of the visit was not in fact principally commercial. He would be going as President Mitterrand's envoy and would have wide-ranging political discussions. Nevertheless clearly the Guangdong project would be discussed, especially as M Freyche (Directeur de la DREE) would also be going. The French did not in fact expect the Chinese to say anything very substantive on the Guangdong project during these discussions. We agreed that we would be in contact after the visit.

6. I suggest that this, together with the information in Mr Kay's minute of 15 October, might form the basis for a telegram to London.

21 October 1981

Cc:

Minister

Mr Kay

Mr L Jones

Mr Hurr

Mr Arbuthnot (paragraph 5)

CONFIDENTIAL COVERING SECRET

Lv Appleyard

L V Appleyard

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