1.
JH 365
调
PRIME MINISTER
GUANGDONG NUCLEAR PROJECT
CONFIDENTIAL
pa
Thin
7824/1 Hiere 16611
FED
I app
Ps/how Belslead PS/PUS Mi-cuff and Mu Deneild
Mr
нкав NEO
TRED
Baszbly WED
NAD
Seefis
The purpose of this minute is to up-date you and colleagues on
the negotiations on this project;
and to recommend that we
should now make an improved but final credit offer to the
Chinese.
70
2
The French deeply impressed the Chinese with the scale of
their nuclear programme. And in support of their strong
industrial position the French have offered the equivalent of the
UK's credit terms. Their new formal offer is 10% over 15 years.
with support for local costs up to 15% of the French project
content, or equivalent support for capitalisation of
pre-commissioning interest and the Chinese have now told my
officials that the French have undertaken to consider further the
case for full capitalisation of interest and other measures which
would reduce the effective interest rates on the loans. I think
we must assume that some further French inducement will be
forthcoming if the Chinese decide to place the whole project with
Building on this, the French have proposed to the
the French.
Chinese that they should take the lead on the whole project,
offering GEC some sub-contract work on the conventional island in