CONFIDENTIAL
4 GEC will soon begin discussions in Shenzhen with the Chinese on a letter of intent and all going well this will lead to contract signature soemtime in the latter half of
this year.
In addition officials will need to clear up some outstanding matters on the financial side, and in particular help draw up loan documentation. These further steps will call for continuing work, and officials will no doubt occasionally have to refer to us, but the signature of the two MoUs augurs well for contract signature in due course.
5 To have reached this position on this complex project has required exceptional patience and determination over long years of negotiation by all concerned. In particular GEC, who have spent several millions of pounds in its pursuit, have had teams of senior engineers in China for months at a time undertaking exceptionally demanding technical and contractual negotiations. Few companies in Britain would have had the financial strength and depth of expertise to
last the course. The order will provide great benefit outside GEC, for sub-contractors and material suppliers, without these companies having to negotiate with the Chinese or take the project risk.
6
-
K
For our own part, the financial offer negotiated is generous in part as a result of French determination to secure their part of the project but the concessions we have had to make do not differ significantly from those envisaged when EX first discussed the project in
February 1984.
7 I am copying this minute to EX colleagues and to Peter Walker and Tom King.
4
L.B.
L B
15 January 1986
JF4ATE
DEPARTMENT OF TRADE AND INDUSTRY