Framatome, with Framatome as lead contractor. I believe the
Chinese took this message fully on board. However, they
continue to be concerned about the risks of taking GEC's first
900 MW high speed set rather than Alsthom's twenty fourth low
speed set.
4 As expected the Chinese asked both for aid and for
capitalisation of pre-commissioning interest. My officials
explained that aid could not be given because of the understand-
ing among the western countries that aid should not be offered on
nuclear projects We understand from the Chinese that the
French have refused to offer aid as such, and the Chinese
appeared to accept our refusal. On capitalisation, in view of
Chinese proposals for further Government to Government
discussions in Peking next year, and a clear unwillingness to
commit the conventional island contract to GEC at present, I
decided that we should make no further formal enhancement of our
credit terms at this stage. I simply indicated to the Chinese
that capitalisation was for consideration, but decisions would
depend on the shape of the total project, and principally the
awarding of the conventional island project to GEC.
5 The Chinese raised again the size of CLP's proposed equity
holding. Li Peng accepted that CLP could not shoulder the
liabilities consequent upon the 40% holding originally envisaged
but pressed that Hong Kong interests should together take a 25%