ZCZC
MILNAN 1981 OCMIAN 1981
CONFIDENTIAL
DD 120100Z HKBTC
FM INDUS TO HKBTC
111900Z MAR
GRS 977
CONFIDENTIAL
FM DTI
Paitan
31
CONFIDENTIAL
21988
1
TO DESKBY 120100Z BTC HONG KONG
TELNO INDUS 49
OF 111900Z MARCH 86
AND TO DESKBY 120100Z PEKING
INFO PRIORITY PARIS
FROM ALTY
Fyki(166/1
RECEIVED IN REGISTRY
13 MAR 1986
DESK OFFICER INDEX
PA
REGISTRY
Action Taken
GUANGDONG NUCLEAR PROJECT: MY THIRD IPT
BACKGROUND BRIEFING FROM SEDMAN (FOR HMG EYES ONLY)
WE THINK THE CHINESE HAVE MISUNDERSTOOD THE SIGNIFICANCE
OF THE QUALIFYING CERTIFICATE AND WE SEE NO PLACE FOR SIGHT
DRAFTS IN ANY LOAN CONNECTION. GEC SEEM PREPARED TO ALTER THE
SUPPLY CONTRACT TO ALLOW BANK OF CHINA TO COUNTERSIGN QC WITH
SIMPLE SIGNATURE. AT GEC'S REQUEST WE HAVE NOT SUGGESTED IN THE
AIDE MEMOIRE REFERENCE TO BOC SIGNING A PAYMENT ORDER. HOWEVER
WE SEE NO BASIC OBJECTION TO BANK OF CHINA INSERTING A FORM OF WORDS ON THE QC WHICH, IN THEIR EYES, TURNS IT INTO A PAYMENT ORDER PROVIDED THE ESSENTIAL AUTHORITY OF THE QC AS REQUIRED BY
UK PARTIES IS UNDIMINISHED. GEC (KNIGHT) HAVE AGREED THAT IF
PRESSED BY BOC ON THE TERMINOLOGY THEY COULD AGREE TO THIS.
THIS IS VERY USEFUL FROM OUR POINT OF VIEW AS GEC
HAVE SOUGHT SG COVER IN EVENT THAT JVC DID NOT MAKE PAYMENT
2
1
CONFIDENTIAL