CONFIDENTIAL

PRIME MINISTER'S VISIT TO CHINA AND HONG KONG, 18-21 DECEMBER 1984 :

HONG KONG

BRIEF NO 3: MEETING WITH LORD KADOORIE CBE JP, CHAIRMAN OF CHINA

LIGHT AND POWER COMPANY

1.

Greatly appreciate enthusiasm and commitment of CLP and you personally, to nuclear project. [I emphasised to the Chinese

Premier when I met him important contribution you have made to bring this project so near to fruition]. Recognise the support you have given to GEC's position.

2. HMG too wishes project to succeed and GEC to obtain major

contract. Believe the Hong Kong Agreement provides a helpful

background for final negotiations.

3. Recognise difficulties nuclear project has created between CLP

and Exxon and your role in resolving these. Hope joint venture

agreement will now be signed shortly.

4. Glad to hear good progress still being made at Castle Peak.

This reflects great credit on both CLP and UK industry.

DEFENSIVE

Extension

1. (If pressed to extend date of present interest rate).

would be very difficult. We have already been generous in extending the rate to 15 January.

2. (If pressed on other aspects of financing offer). Our financial offer is already generous. Particular requests for improvement will have to be discussed in final negotiations.

CONFIDENTIAL

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