GRS 500
CONFIDENTIAL
FM PEKING
TO DESK3Y 07090OZ DTI
TELNO INDUS 008
OF 070303Z JANUARY 36
AND TO DESKBY 07090OZ FCO
CONFIDENTIAL
INFO PRIORITY PARIS, BTC HONG KONG
SAN Parti-
PA
MKK 166/1
ECEIVED IN REGISTRY
07 JAN1986
¡DESK OFFICER INDEX
PA
KTRY
jaken
FROM BENJAMIN
3
4-
MY TELNO INDUS 7 AND YR INDUS 8 AND 9: GUANGDONG NULCEAR PROJECT
1. SUMMARY: AGREEMENT ON MOU REACHED AT ELEVENTH HOUR, WITH ONE ISSUED RAISED VERY LATE IN DAY BY CHINESE LEFT FOR PESOLUTION DURING BOC VISIT TO LONDON LATER THIS MONTH.
2. DETAIL: OUR INDUS 6 REFERRED TO TWO OUTSTANDING ISSUES OF PRINCIPLE (PARA 3) FOR DISCUSSION ON FINAL DAY. SUITABLE FORM OF WORDING EVENTUALLY AGREEN TO COVER USE OF HONG KONG SUBSIDIARIES. ON LETTER ABOUT DEFERMENT OF REPAYMENT, 30C AGREED TO WITHDRAW REFERENCE TO GEC PERFORMANCE, ON CONDITION:
A) THAT LETTER REFERRED TO UK RECOGNITION OF CHINESE CONCERN AND INTENTION TO ALLEVIATE IT SEMICOLON
B) THAT LETTER TO LI PENG EXPANDED UK INTENTIONS IN THIS AREA.
3. FOLLOWING FORM OF WORDS WAS INCLUDED IN THE COMFORT LETTER:
QUOTE
HMG RECOGNISES THE CONCERN OF THE CHINESE AUTHORITIES THAT THE SUCCESS OF THE PROJECT SHOULD NOT BE JEOPARDISED BY SHORTFALLS IN EQUIPMENT PERFORMANCE. HMG WILL CONSIDER APPROPRIATE MONITORING ARRANGEMENTS TO ALLEVIATE THIS CONCERN.
UNQUOTE
4. MIFT CONTAINS PROPOSED AMENDED TEXT FOR FINAL SECTION OF LETTER TO LI PENG. SUGGEST YOU AWAIT OUR RETURN BEFORE SUBMITTING COMPLETE
TEXT.
CONFIDENTIAL
15.
1