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3

WE HAVE ALSO DISCUSSED THE PROPOSALS INFORMALLY WITH EDF,

WHO HAVE DRAWN UP THE PROJECT CONTROLS AND THE REPORTING

PROCEDURES AND WILL FORM THE PROJECT MANAGEMENT TEAM WITH THE JVC.

AFTER INITIAL CONCERN THAT HMG'S ROLE COULD CUT ACROSS THEIR OWN,

EDF SEEM CONTENT WITH WHAT IS PROPOSED, WHILST MAKING CLEAR THAT

THE JVC HAS THE FORMAL SAY.

4

WE NOW NEED TO DECIDE HOW TO PUT THE PROPOSALS TO THE

CHINESE SIDE. WE DISCUSSED THIS WITH DAVIES WHEN HE WAS IN THE UK

RECENTLY, AND AGREED THAT AN APPROACH SHOULD INITIALLY BE MADE TO THE CHINESE GOVERNMENT, GIVEN THAT THE COMMITMENT HAD BEEN MADE AT THAT LEVEL ORIGINALLY. WE ARE PREPARED TO DISCUSS THE PROPOSALS

IN MORE DETAIL SUBSEQUENTLY WITH THE JVC, BUT WE DO NOT WISH,

IF

POSSIBLE, TO ENTER INTO A NEGOTIATION ABOUT THE AMOUNT OF EFFORT HMG IS TO PUT INTO THIS TASK OR THE RESPONSIBILITIES WE WILL

ACCEPT.

5

WE ARE CONSIDERING HERE WHETHER WE SHOULD TAKE THE

OPPORTUNITY OF VICE PREMIER LI PENG'S MEETING WITH MR CHANNON IN

JUNE TO HAND ACROSS A NOTE COVERING THESE PROPOSALS. AT THE SAME

TIME THE NOTE WOULD EXPRESS THE HOPE THAT ON THE CHINESE SIDE TOO

EVERY EFFORT WOULD BE MADE TO FACILITATE THE SUCCESSFUL

CONSTRUCTION OF THE STATION. COPIES COULD ALSO SIMULTANEOUSLY BE

HANDED OVER TO THE APPROPRIATE OFFICIALS IN PEKING.

6

GRATEFUL FOR YOUR ADVICE ON THE TACTICS OF THIS SUGGESTION

AND ANY COMMENTS ON THE TEXT IN MIFT.

HOWE

GUANGDONG

[COPIES SENT TO NO 10 DOWNING STREET]

ADDITIONAL DISTRIBUTION

GUANGDONG NUCLEAR

LIMITED

FED

NED

TRED

HKD

PUSD(MR CROWLEY)

WED

PS

PS/MR RENTON PS/PUS

SIR W HARDING

MR DAUNT

MR WILSON

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