GRS 230
CONFIDNETIAL
FM PEKING
TO DESKEY 05130OZ DTI
TELNO INDUS 005
OF 051158Z JANUARY 86
AND TO DESKBY 05130OZ FCO
INFO IMMEDIATE BTC HONG KONG
INFO ROUTINE PARIS
CONFIDENTIAL
MKK 166/1
RECEIVED IN REGISTRY
06 JAN1986
DESK OFFICER
REGISTRY
FROM BENJAMIN FOR DTI DUTY OFFICER TO PASS TO DOBBIE
INDEX
PA
Actin Taken
YOUR TELNO INDUS 6: GUANGDONG NUCLEAR PROJECT
1. THANK YOU FOR QUICK RESPONSE.
2. IN DISCUSSION THIS MORNING ON PREMIUM, BOC ACCEPTED THE POINT OF PRINCIPLE THAT WE SHOULD NOT BE ASKED TO COMPENSATE THROUGH PREMIUM CONCESSIONS FOR JVC CONCESSIONS ON GEC PRICE.
3. BOC SUBSEQUENTLY PRODUCED PRECISE FRENCH PREMIUM FIGURES OF 1.79 PERCENT OF LOAN VALUE FOR CREDIT PREMIUM AND 0.93 PERCENT OF CONTRACT PRICE FOR CONTRACT PREMIUM. WE HAD UNDERSTOOD FROM FRENCH GOVERNMENT FIGURSE OF 1.8 PERCENT AND 0.97 PERCENT RESPECTIVEL
Y.
REWORKING CALCULATIONS ON THE NEW BASIS, TOGETHER WITH LATEST FEC INFORMATION ON SIZE OF CONTRACT PREMIUM, ENABLED US TO JUSTIFY A REDUCTION IN CREDIT PREMIUM FROM 2.3 PERCENT TO 2.14 PERCENT. THIS WAS ACCEPTED BY BOC, AND IS WITHIN THE AUTHORITY GRANTED BY MINISTERS. WE HAVE THUS REACHED AGREEMENT ON PREMIUM LEVEL WITHOUT COMPROMISING PRINCIPLE OF COMPARABILITY WITH THE FRENCH.
*
4. WE ARE CURRENTLY ENGAGED IN DRAFTING MEMORANDUM OF UNDERSTANDING, WITH SIGNING CEREMONY DUE 3.30 PM TOMORROW LOCAL TIME. JVC/50C HAVE INTRODUCED A NUMBER OF UNACCEPTABLE CHANGES INTO DRAFT MOU, BUT WE ARE NONETHELESS HOPEFUL THAT THE SIGNATURE CAN TAKE PLACE ·
TOMORROW.
SECRETARY OF
5. WE HAVE REFERRED IN CUR DISCUSSIONS TO LETTER OF STATE TO LI PENG AND BOC HAVE INDICATED THAT THIS WOULD BE WELCOME TO CHINESE SIDE. WE SUGGEST THAT ORIGNIAL VERSION IS TYPED UP IN LONDON FOR SIGNATURE, TO AWAIT CONFIRMATION OF SIGNATURE OF MOU. WE SHALL BE DISCUSSING TIMING OF SUBMISSION WITH EMBASSY.
CONFIDENTIAL
هار
S