CONFIDENTIAL
GRS 240
CONFIDENTIAL
FM PEKING
TO DESKBY 18093OZ DTH
TELNO INDUS 52
OF 180645Z MARCH 86
MKC 166/1 RECEIVED IN REGISTRY
2 CMAR 6
DESK OFFICER
AND TO IMMEDIATE BTC HONG KONG
AND TO PRIORITY PARIS
INDEX
PA
As Partn
Action Taken
ра
YR TELNO INDUS 168: GUANGDONG NUCLEAR PROJECT
1. IN THE ABSENCE OF THE AMBASSADOR IN HONG KONG, WAS SUMMONED TO A MEETING TODAY WITH CHEN ZENGQING, DEPUTY DIRECTOR OF THE OFFICE OF THE LEADING GROUP ON NUCLEAR POWER, WHICH REPORTS DIRECTLY TO THE STATE COUNCIL NUCLEAR STEERING COMMITTEE.
2. CHEN SAID THAT VICE-PREMIER L PENG WAS DEEPLY CONCERNED ABOUT THE DELAY IN SIGNATURE OF THE LETTER OF INTENT FOR THE GUANGDONG PROJECT. HE HOPED A SOLUTION COULD BE FOUND AS SOON AS POSSIBLE. THE MAIN OBSTACLE WAS THE QUESTION OF INCLUSION IN THE LOAN AGREEMENT OF
ASSURANCES BY HMG.
3. CHEN WENT ON TO SAY HE HOPED HMG WOULD UNDERSTAND THE CHINESE CONCERN. THE GUANGDONG PROJECT WAS VERY IMPORTANT BOTH FOR POLITICAL AND ECONOMIC REASONS. HE LOOKED TO HMG TO EXERT THE NECESSARY INCLUENCE ON THE BANKS SO THAT SUITABLE PROVISION MIGHT BE INCLUDED IN THE LOAN AGREEMENT. ONCE THIS OBSTACLE WAS REMOVED FINAL AGREEMENT COULD BE REACHED VERY EASILY.
4. 1: RELIED ON THE LINES OF PARA 4 OF TUR. IN RESPONSE, CHEN SAD HE WAS HAPPY TO HEAR THAT FRESH PROPOSALS WERE TO HAND. HE HOPED THEY WOULD PROVE POSITIVE. IF NECESSARY THE CHINESE GOVERNMENT COULD ''INFLUENCE'' THE JVC. THEY WERE CERTAINLY PREPARED TO BE FLEXIBLE.
5. IN CONCLUSION CHEN RE-EMPHASISED THE CONCERN OF HIS GOVERNMENT
ABOUT THE QUALITY OF GEC'S EQUIPMENT.
6. UNDERTOOK TO REPORT CHEN'S REPRESENTATIONS.
THOMSON
GUANGDONG
LIMITED
FED
NED
TRED
HKD
WED
PUSD(MR CROWLEY)
[COPIES SENT TO NO 10 DOWNING STREET]
PS
PS/MR RENTON
PS/PUS
SIR W HARDING
MR DAUNT
MR WILSON
ADDITIONAL DISTRIBUTION
GUANGDONG NUCLEAR
CCFIDENTIAL
39Page 271