The Foreign Secretary continued that the project would be more

from

acceptable' on the Hong Kong point of view if there were a substantial

ptat

British element in it. HM Ambassador referred to a previous

conversation he had had with Mr Zhao about the project and said that

since we recognised a potential French interest, we were now thinking

in terms of an Anglo/French collaborative project. Hong Kong also

had a vital interest, as the project would only be viable through

the sale of electricity to the territory and that it would be much

easier for Hong Kong to cooperate if there were a substantial British

content. The Prime Minister said that he appreciated this point and

invited the British to keep in touch, particularly when the studies

had been completed and the choice of equipment suppliers was being

reviewed.

the

Mr McLaren also mentioned to Mr Stones conflicting information

that we had received via the Belgium Parliamentary Delegation.

Mr Yang Shangkun, a former mayor of Canton and presently a vice

Chairman of the National Peoples Congress, told the delegation that

the decision had been taken to go ahead with the project.

He reiterated that this was the same station that had been mentioneä

by President Giscard. The French would supply the muclear island, the

UK the associated equipment and the Americans "equipment associated

with the associated equipment".

To further confuse the issue,

he added that there would be contracts available for other countries

as well and throughout gave the impression that all these points

had been firmly decided.

Mr Stones said that although he made no claim to be an expert on

China, he had visited there 20 or so times during the last 18 months

and felt that he had established good relations with many Chinese.

His information on the Foreign Secretary's visit was very similar;

he understood that the Chinese Prime Minister had welcomed the idea

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