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THE FRENCH POSITION. IF THIS WERE NOT FORTHCOMING THEY REALLY FELT THAT IN VIEW OF THE SUBSTANTIAL EFFORTS THE UK SIDE HAD MADE IN PREMIUM AND OTHER AREAS DURING THE PRESENT NEGOTIATIONS, THE CHINESE SIDE COULD NOW CLOSE THE SMALL GAP REMAINING.
5. GRATEFUL IF WE COULD ALSO BE AUTHORIZED TO SAY THAT WE HAD CON-
SULTED MINISTERS FURTHER ON THE QUESTION BEARING THE COST OF
INTEREST SHOULD THE LOAN BE EDFERRED, AND THEY HAD CONFIRMED THE
UK POSITION THAT WE COULD SHOW NO FURTHER LATITUDE ON THIS POINT.
6. GRATEFUL IF THIS LINE COULD CLEARED ON SATURDAY IF POSSIBLE TO PERMIT A RESPONSE DESKBY 0500012.
7. SHOULD THE CHINESE BE UNWILLING TO MOVE, WE FACE THE PROSPECT
EITHER OF STAYING IN PEKING TO SIT MATTERS OUT OR DEPARTING ON TUESDAY WITHOUT AN AGREEMENT. TACTICALLY WE WOULD WISH TO SAY THAT IF NO AGREEMENT HAD BEEN REACHED BY TUESDAY, WE WOULD NEED TO RETURN TO REPORT THE POSITION TO MINISTERS, ALTHOUGH THIS WOULD OF COURSE CAUSE FURTHER DEALY IF WE ACTUALLY PUT IT INTO PRACTICE. GEC'S MOU
HAS A CLAUSE RENDERING IT NULL AND VOID SHOULD THE UK AUTHORITIES
FAIL TO AGREE WITH BOC. GRATEFUL FOR ANY COMMENTS ON THE
TACTICS.
9. VICE PREMIER LI PENG IS CURRENTLY AWAY WE UNDERSTAND IN SHANGHAI.
9. YOUR INDUS 4 AND 5: COMMENTS WILL FOLLOW TOMORROW OR MONDAY.
EVANS
GUANGDONG
LIMITED
[COPIES SENT TO NO 10 DOWNING STREET]
FED
NED
TRED
HKD
PUSD(MR CROWLEY) WED
PS
PS/MR RENTON PS/PUS
SIR W HARDING
MR DAUNT
MR WILSON
ADDITIONAL DISTRIBUTION
GUANGDONG NUCLEAR
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