GRS 200
CONFIDENTIAL
FM PEKING
CONFIDENTIAL
TO DESKBY 28090OZ FCO
TELNO 1352
OF 280815Z JULY 86
TOP CORY
TOP Allac 16-DIST 7
INFO IMMEDIATE HONG KONG, BTC HONG KONG, DEPT OF INDUSTRY
INFO PRIORITY PARIS
359
HONG KONG TELNO 168 TO PEKING: CHINA: NUCLEAR SAFETY
1. IN HONG KONG TERMS, I UNDERSTAND THE STRENGTH OF THE CASE FOR OUR ASKING THE CHINESE TO POSTPONE SIGNING OF THE FINAL CONTRACTS
UNTIL THE UMELCO REPORTS HAVE BEEN PRODUCED. BUT THERE ARE IMPORTANT
COUNTER CONSIDERATIONS:
(A) THE CHINESE HAVE BEEN TOLD BY MINISTERS SINCE CHERNOBYL THAT
THE BRITISH GOVERNMENT IS COMMITTED TO THE PROJECT. BOTH LI PENG
AND ZHOU PING HAVE QUOTED THIS BACK TO ME DURING THE PAST FORTNIGHT.
IT WOULD BE QUITE A STEP FOR US TO SUGGEST TO THE CHINESE NOW THAT
THIS COMMITMENT WAS CONDITIONAL OR QUALIFIED.
(B) A FEATURE OF THE LONG NEGOTIATIONS ABOUT THE PROJECT HAS BEEN
CLOSE COLLABORATION BETWEEN THE FRENCH AND THE BRITISH GOVERNMENTS.
AT THE VERY LEAST, THE FRENCH WOULD EXPECT TO BE CONSULTED BEFORE WE
SUGGESTED TO THE CHINESE THAT THE SIGNATURE OF THE MAIN CONTRACTS
(THE LARGER OF WHICH WILL BE BETWEEN THE JOINT VENTURE COMPANY AND
FRAMATOME) SHOULD BE POSTPONED.
(C) GEC PUT AN ENORMOUS EFFORT INTO THE NEGOTIATION WHICH LED UP TO
THE SIGNING OF THEIR MEMORANDUM OF UNDERSTANDING WITH THE JOINT
VENTURE COMPANY AT THE NEW YEAR. THEY, TOO, WOULD AT THE VERY LEAST EXPECT TO BE CONSULTED ABOUT A SUGGESTION BY US TO THE CHINESE THAT THE SIGNATURE OF THEIR CONTRACT WITH THE JVC SHOULD BE POSTPONED.
2. ALL THIS IS RELATED TO THE IMPORTANT MESSAGE WHICH ZHOU PING GAVE
ME ON 21 JULY (MY TELEGRAM NO 1307) AND HOW WE SHOULD REPLY TO
IT.
EVANS
GUANGDONG
[COPIES SENT TO NO 10 DOWNING STREET]
ADDITIONAL DISTRIBUTION
LIMITED
HKD
FED
NED
TRED
PUSD(MR CROWLEY) WED
PS
PS/MR RENTON
PS/PUB
SIR W HARDING
MR DAUNT
MR WILSON MR SLATER
GUANGDONG NUCLEAR
CONFIDENTIAL