69
GRS 700
CONFIDENTHAL
CONFIDENTIAL HKK 040/57
AMENDED DISTRIBUTION RECEIVED REGISTRY
FROM PEKING 1004127 NOV 84
TO IMMEDIATE FCO
TELEGRAM NUMBER 2737 OF 10 NOVEMBER
INL
INFO IMMEDIATE HONG KONG AND BTC HONG KONG
t
12 NOV 1984
FICER
PA
2
MIPT (NOT TO BTC HONG KONG): FUTURE OF HONG TO PRIORY'S
VISIT TO PEKING AND HONG KONG: GUANGDONG NUCLEAR PROJECT.
MESTER'S
1. ZHOU ASKED ME TO LET HIM KNOW OF ANY SPECIFIC BILATERAL ISSUES
WHICH THE PRIME MINISTER WOULD WISH TO RAISE DURING THE VISIT ON
THE ECONOMIC AND TECHNICAL SNDES. ALTHOUGH HE WAS NOT RESPONSIBLE
FOR THIS ASPECT, THE CHINESE HOPED THAT, AFTER THE HONG KONG AGREEMENT HAD BEEN SIGNED, THERE WOULD BE A BIG DEVELOPMENT OF ECONOMIC COOPERATION BETWEEN OUR TWO COUNTRIES.
THE
R!
HY
on Taken
MFA HAD ENQUIRED ABOUT PROGRESS ON THE GUANGDONG NUCLEAR DISCUSSIONS.
VICE PREMIER L'I PENG HAD TOLD ZHOU THAT THE QUESTIONS OF OFFTAKE
AND THE PRICE OF THE EQUIPMENT HAD YET TO BE SETTLED. CHINA HOPED
TO BUY EQUIPMENT FOR THE NUCLEAR #SLAND FROM FRANCE AND FOR THE
CONVENTIONAL ISLAND FROM BRITAIN. FRANCE AND BRITAIN HAD STATED
THEIR PRICES. SWISS AND GERMAN CONSULTANTS WHO WERE ADVISING
THE CHINESE THOUGHT THEM RATHER HIGH. THE MFA WISHED TO GIVE
MMPETUS TO THE NEGOTIATIONS. BUT IF THE PRICES WERE TOO HIGH THEIR
ABILITY TO PROVIDE IMPETUS MIGHT BE LIMITED. HE HOPED THAT THE
FCO COULD TRY TO GIVE POLITICAL IMPETUS TO THE NEGOTIATIONS, LIKE
THE MFA. IF AGREEMENT COULD BE REACHED DURING THE PRIME MINISTER'S
VISIT ON THE ESTABLISHMENT OF THE JOINT VENTURE COMPANY, AND IF PROGRESS COULD BE MADE ON PRICES, THIS COULD BE OF ADVANTAGE TO
OTHER ECONOMIC AND TECHNICAL COOPERATION PROJECTS BETWEEN OUR TWO
COUNTRIES.
2. # SAND THAT WE HAD NOTED CAREFULLY WHAT PREMIER ZHAO HAD SAID IN
EUROPE LAST SUMMER ABOUT CHINA'S WISH TO DEVELOP CLOSER ECONOMIC AND
COMMERCIAL TELATIONS WITH WESTERN EUROPE. PERSONALLY # WAS
DISSAPPOINTED THAT BRITISH PRODUCTS AT PRESENT ONLY ACCOUNTED
FOR 1.4% OF CHINA'S IMPORTS. * SHOULD LIKE TO SEE THIS FIGURE
RISE TO 3, 4 OR 5%.
3. ON THE GUANGDONG NUCLEAR PROJECT, THE FRENCH AMEASSADOR AND THOMSON HAD CALLED ON L PENG RECENTLY, TO DISCUSS THE TIMING OF THE NEGOTIATIONS ON FINANCING IN RELATION TO THE CONTRACT
NEGOTIATIONS. THE FORMER CLOSELY INVOLVED THE FRENCH AND
BRITISH GOVERNMENTS. THE LATTER WERE FOR THE COMPANIES CONCERNED.
SINCE THAT MEETING. IMPORTANT DEVELOPMENTS HAD TAKEN PLACE N
RELATION TO OFFTAKE WHICH, I THOUGHT, WOULD BE WELCOMED BY THE CHINESE SIDE: THE WAY SHOULD NOW BE CLEAR FOR THE
FORMATION OF THE JOINT VENTRE COMPANY. THE PRIME
MINISTER TOOK A CLOSE INTEREST IN THE GUANGDONG NUCLEAR
PROJECT. WE WANTED THE SUPPLY OF EQUIPMENT FOR THE CONVENTIONAL
HSLAND TO BE UNDERTAKEN BY BRITISH FIRMS, LED BY GEC. LIKE ZHOU,
HOPE THAT THE PROJECT WOULD BE AT A STAGE FOR FRUITFUL DISCUSSION
WHEN THE PRIME MINISTER MET CHINESE LEADERS.
CONFIDENTIAL
14.