CONFIDENTIAL

NOTES OF MEETING TO DISCUSS GUANGDONG NUCLEAR PROJECT HELD AT ASHDOWN HOUSE ON 12 OCTOBER 1981

45

ACTION

Present: Mr A G Manzie

Mr C Benjamin

Mr M Hawtin

Mr R Adams

Mr G Stevens

Chairman

PEP

Mr K B Newton

Mr N R Brice

Treasury

Treasury

Energy

Mr A Paul

FED FCO

Mr A Fryer

HKG FCO

Mr M Roberts

HKCK.

RECEIVED S

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166/1

1931

JNU FCO

Mr R Allen

TAY

Mr R Ranson

Mr A J Havelock

CRE

ECGD

quen

INDLA

лю

28.00

Mr Manzie opened the meeting by saying that he wished to review

the situation to date, to consider what papers might be presented

to Ministers and also the forthcoming meetings with Lord Kadoorie.

Mr Havelock then gave a summary of recent activities on the project,

drawing from the background paper previously circulated. Mr Havelock

confirmed that the Westinghouse agreement with the Chinese only.

covered turbines up to 350 MW. He added that there was no

information available on the agreement with Japan on the peaceful

uses of nuclear energy. JNU undertook to seek clarification.

JNU

Mr Havelock reiterated his concern over the activities of Bechtel,

who had just given a presentation in Peking. It would seem that

they are seeking to work with the Chinese, and are recommending

the course most favourable to their own organisation, namely to

split the power station into the maximum number of small packages. If this is Freee them it

This would be contrary to the UK's best interests, and also from

the Chinese points of view could be unacceptable as it would leave

them bearing liabilities in the event that the various packages

did not integrate properly. It was agreed that Mr Manzie would

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