GRS 600
CONFIDENTIAL
FM PEKING
TO DESKEY 021COOZ DTI
TELNO IND US 1
OF 02081OZ JAN 86
CONFIDENTIAL
AND TO DESKBY 02100OZ DTI/OTTER
AND TO IMMEDIATE FCO
INFO DESKBY 0209COZ ETC HONG KONG, HONG KONG.
YOUR TELNOS INDUS 1 AND OTTERS 365 AND 366: GUANGDONG NUCLEAR
· PROJECT
1. DAVIES SHOWED THE TEXT OF THE COMFORT** DOCUMENT TO DAVIDSON BEFORE DELIVERING IT TO CATER ON THE MORNING OF 1 JANUARY. DAVIDSON WAS CONTENT. HE LEFT WITH US COPY OF A ONE-PAGE MEMORANDUM SIGNED
ON 31 DECEMBER BY HIM AND PAN YANSHENG, SETTING OUR THE AGREED
FINAL CONTRACT PRICE. THIS MEMORANDUM WAS DRAFTED BY THE JVC,
DAVIDSON SUSPECTS, SO THAT A SIGNED DOCUMENT WOULD EXIST PRIOR TO LI PENG'S DINNER ON 1 JANUARY. DISCUSSIONS ON THE (MUCH FULLER)
MEMORANDUM OF UNDERSTANDING WERE THEN CONTINUING, AS INDEED THEY STILL ARE TODAY. BOTH SIDES HOPE TO COMPLETE THESE AND SIGN THE
MOU ON 3 JANUARY.
2. IN DELIVERING YOUR TEXT TO CATER ON 1 JANUARY, DAVIES ASKED
THAT IT SHOULD BE PASSED ALSO TO BOC WHO WERE UNOBTAINABLE
DURING THE HOLIDAY. DAVIES DID NOT THEREFORE GET DRAWN INTO MAKING
THE ADDITIONAL OR EXPLANATORY POINTS IN YOUR TURS, EXCEPT FOR THE ONE CONTAINED IN PARA 4 OF YOUR OTTER 356. CATER EXPRESSED
APPRECIATION FOR YOUR EFFORTS.
3. CATER ADDED THAT A PROBLEM WAS EMERGING BETWEEN DAVIDSON AND
PAN ABOUT THE DATE OF THE FIRST DOWN-PAYMENT. DAVIDSON HAS SUBSEQUENTLY CONFIRMED THIS POINT TO US. THE JVC ARE OBJECTING
TO GEC'S POSITION (LONG MADE CLEAR TO THE JVC) THAT 2.5% SHOULD
BE PAID ON SIGNATURE OF LETTER OF INTENT. BUT DAVIDSON BELIEVES
THAT THE JVC WILL GIVE IN IN THE END AND AGREE TO THE POINT
BEING STIPULATED IN THE MOU.
4. LI PENG'S DINNER WAS, IN HIS WORDS, PRINCIPALLY TO CELEBRATE
THE NEW YEAR RATHER THAN DISCUSS BUSINESS. BESIDES US, THE WHOLE
GEC TEAM HAD BEEN INVITED, AS HAD THE FRENCH AMBASSADOR, GOURIEVIDIS AND THEIR WIVES. LI PENG MADE A SHORT AND GRACIOUS OFF-THE-OUFF
SPEECH. THIS HAS BEEN REPORTED BY XINHUA AND HAS ALREADY BEEN
PICKED UP BY THE SCMP IN HONG KONG AND BY LOCAL BRITISH PRESS HERE.
THE REPORT SAYS, INTER ALIA: QUOTE LI PENG EXPRESSED HIS
CONGRATULATIONS ON THE RECENT SIGNING OF THE MEMORANDUM OF
UNDERSTANDING (SIC) BETWEEN GNP JVC AND COMPANIES OF BRITAIN AND
FRANCE ON FINAL PRICE NEGOTIATIONS FOR MAJOR EQUIPMENT AND
SERVICES SUPPLY FOR THE PLANNED QUANGDONG NUCLEAR POWER STATION.
UNQUOTE.
དྷུ།m་ ་་
་་་་
15.