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CONFIDENTIAL

DEPARTMENT OF INDUSTRY

Ashdown House 123 Victoria Street

Telex 8813148 DIHQ G

Telegrams Advantage London SW1

Telephone Direct Line 01-212

Switchboard 01-212 767820

Mr G Stevens

Atomic Energy Division

Department of Energy. Themes House South Millbank

Dear Geoffrey,

HKCK 166/1

No

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London SW1E 6RB

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VED IN REGISTRY NO. 51

02 JUN1981

GUANGDONG NUCLEAR PROJECT

OFFICER

PA

36

REGISTRY Action Taken

At a number of recent meetings, including the one with Mr Stones of CLP, there has been discussion of the need for officials to visit Peking and Guangdong to confirm the Government's interest in and commitment to the nuclear project and also to attempt to elicit from the Chinese their views and wishes on contractor choice and financing. Following further talks between Mr Manzie and Mr Lippitt, Mr Manzie now feels that the time is ripe for such a visit to be made, and has asked me to seek the views of colleagues concerned with the project.

2.

We have all in the past had doubts about such a visit and indeed we can think of reasons why it should be put off for a further period, the changes in the French Administration and conflicting reports from Mr Potter are but two. However, our view is that at some time we must grasp the nettle if we are not to be upstaged by others and that the time is now.

3. I should prefer to avoid calling a meeting if there is a consensus but otherwise I feel we should meet some time next week.

4.

I am copying this letter to Martin Roberts JNU.FCC, Hugh Davies FED.FCO, Phillip Morrice HKG.FCO and Richard Ranson ECGD. We should also, I presume, seek the views of Peking and BTC Hong Kong and would be grateful if FCO colleagues would consider this.

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