holding, in line with Chinese joint equity law.
If a 25% Hong
Kong equity stake could be secured, together with a satisfactory
off take agreement, the Bank of China would be willing to
consider a comprehensive guarantee for the foreign loans.
6 The Chinese are clearly anxious to make progress on Hong
Kong's participation in the project, and we welcomed this
constructive proposal, but my officials did impress on the
Minister that it would not be easy to raise the Hong Kong equity
stake China was seeking.
7
A number of further meetings are to be held in the early part
of next year:
further technical discussions with GEC in Peking,
in parallel with discussions in Hong Kong on the off-take
agreement and CLP's role in the project in which representatives
of the Chinese, UK and Hong Kong Governments will participate;
to be followed by further high level Government to Government
discussions in Peking. In preparation, my officials will be
holding discussions with Mr Stones of CLP here next week. And
when I visit Peking in January I shall reaffirm the UK's policy
on this project and seek to accelerate decisions.
8 My appraisal is that Li Peng and his colleagues are in no
doubt about the circumstances in which the UK Government is
willing to support this project. I believe we must now make
this point as plainly to the French as we have to the Chinese.
My officials understand that the French are still proceeding with
plans to present an all French bid in Peking, offering GEC a