GRS 200

TELNO 1352

НСК 166/1

RECEIVED I

CONFIDENTIAL

INDEX

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CONFIDENTIAL

FM PEKING

TO DESKBY 28090OZ FCD

OF 280815Z JULY 86

INFO IMMEDIATE HONG KONG, BTC HONG KONG, DEPT OF INDUSTRY

INFO PRIORITY PARIS

Cr2 281

Jukorra

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

2817-

GUANGDONG

LIMITED

HKD

FED

NED

TRED

[COPIES SENT TO NO 10 DOWNING STREET]

ADDITIONAL DISTRIBUTION

PS

PUSD(MR CROWLEY) WED

PS/MR RENTON PS/PUS

SIR W HARDING

MR DAUNT

MR WILSON MR SLATER

GUANGDONG NUCLEAR

CONFIDENTIAL

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