4.
Other recent reports from China indicate that considerable importance
is attached to the provision of a highly attractive financial package to
support any hardware offer. Treasury and ECGD have considerable reservations
and wish to avoid any commitment until the French terms have been revealed.
The French may continue to offer an all French package for Shanghai backed
by attractive finance leaving Guangdong and the UK as a reserve option.
5.
Sir Lawrence Kadoorie is submitting a report to the GPC/CCP
Executive Committee - which will remain in being stating amongst other
things:
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I have approached the British authorities with a view to ascertaining
their attitude and the degree of support we might expect from
the British Government.
As a personal interpretation of their views I believe that the
UK Government would support this project if: it were to secure
major hardware orders; the initial fuel charge would come from
the supplier of the nuclear island, but it might be to our
advantage to have two sources of supply for subsequent charges.
This is a matter for future consideration.
I believe, too, that support would take the form of an attractive
technical, financial and resource package put together and
presented by the UK Government. I believe that the UK would be
prepared to work with Framatome in whatever contractual relationship
might be preferred by the PRC and joint venture company, and that
UK interests would be prepared to inject equity. Alternatively,
if we so wish they would be prepared to work with Westinghouse.
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