CONFIDENTIAL
DSR 11C
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technical experience from which to offer high-speed 900MW
turbine generators of the sort proposed. The UK as yet
has no
experience in building or operating complete PWR
stations. The French appear to have established a favoured
position in Peking following an undertaking to the French
President that France would be the preferred supplier of
China's first nuclear station. (But there are differences
of view as to how firm the Chinese commitment to the French is)
7. Non-proliferation conditions will also be crucial. The
Chiense have made it clear that they will not accept inter- national Administration to nuclear exports from the US to
China, but in view of past US non-proliferation policy the Chinese may in any case regard the US as unreliable suppliers.
UK Ministers have agreed that since China is a nuclear
weapon state we should not seek to insist on IAFA safeguards
but that we should seek assurances that equipment and materials
will not be diverted to military use nor re-exported without prior consultation and will receive adequate physical
protection. The French position is similar.
8. The most serious danger appears to lie in a possible
all-French bid. Accordingly GEC hope to enter into an exclusive
agreement with Framatome for the presentation of a joint bid. GEC and Framatome have drawn up a draft agreement under which Framatome would supply the nuclear island and GEC the
conventional island. Following discussions with the French at official level in February into the prospects for Anglo/ French collaboration we would be prepared for this agreement to be finalised, The French Government have however yet to agree This agreement would not prevent BNF1 fromcooperating with Westinghouse for the supply of fuel services, if the project were to go that way. We are encouraging RNFL to explain this option with the Americans.
Safety Questions
*
9. Safety is a matter for the Chinese themselves. However the
Government of Hong Kong will wish to be satisfied about the
reactor safety. It seems that the Chinese will be sensitive
to that concern. There could be a presentational problem if
the Guangdong reactor cannot then meet standards being adopted
for the design by NNC and Westinghouse for presentation to
a public enquiry in the UK in mid-1982.
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