CONFIDENTIAL
14. Although the present Chinese preference is for pressurized water reactors (PWRS) there is a wealth of nuclear expertise
available in Britain which will be useful to China as her programme
develops, eg fuel cycle services. Premier Zhao told HM Ambassador in February that there was scope for cooperation. The FRG, Italy, France and Brazil have already concluded formal agreements; others,
including USA and Japan, hope to do so soon. If we are to gain
commercial benefit from the Chinese programme we should not delay
in making proposals.
15. The agreement we envisage will provide a framework within
which British companies and other organisations involved in the
nuclear industry can develop collaboration with their Chinese counterparts. The cooperation will be for peaceful purposes only and the agreement will provide us with assurances on this. A draft text covering these points will be forwarded soon to the
Embassy in Peking for presentation.
d) Claims
16. Following Chinese indications of willingness to consider
private claims the Foreign Compensation Commission undertook in
1980 the registration of British claims against China. In
November 1983 the Embassy in Peking submitted a list of all
outstanding claims. This comprises £352m of private claims,
£24m of Government claims and £217m of sterling bonds. We hope
that the Chinese will soon complete the checking of claims with
local authorities and agree to open negotiations. There is
every indication however that progress is likely to be extremely
slow. The French Government presented claims in June 1982 but
are still waiting to begin negotiations.
17. There has recently been growing private and Parliamentary
pressure on HMG to seek an early settlement.
18. The Secretary of State raised the issue with Foreign
Minister Wu Xueqian in April 1984. Wu said that the claims
/were
CONFIDENTIAL