LB1AGZ
Dr Wilson
CONFIDENTIAL
HICK
166/1
7 AUG 1986
Tu-
FROM: CO Hum HKD
ON
-DATE: -31 July 1986
3835
Com the сл
cc: Mr Slater
DAYA BAY: MEETING AT DTI ON 1AUGUST
Mr Gordon,
NED
Mr Masefield, FED
A
B
1.
You will be attending Mr Benjamin's meeting tomorrow:
HKD and NED will also be represented. We have reviewed
with FED and NED the current position on the two main
issues identified in Mr Benjamin's letter to you of 30
July.
Pressures in Hong Kong to ....defer the signing of
contracts or underline the "political price" of continuing with the project
2.
We are faced with irreconcilable demands from Hong Kong
and the Chinese. The Governor recommends that we explain
to the Chinese the "political price" to be paid if the
project goes ahead. Neither our Ministers nor those in
other Departments can agree to this. It would have grave implications for our bilateral
relations with both China
and France, would attract strong criticism from the
domestic nuclear industry, and (as Mr Channon has said in
his letter of 28 July to the Secretary oif State) could
cast doubts about our credibility as a participant in any major projects. More recently Hong Kong has suggested that
encourage the Chinese to defer signature of the contract
until the UMELCO teams have reported their findings. For
their part the Chinese have asked us for a clear public
statement of support for the project.
strongly counter-productive in terms of Hong Kong opinion, at least at present.
we
This would be
CONFIDENTIAL