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CPS,

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75%

PS/ Belland,

CHANCELLOR O

CONFIDENTIAL

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PS/PUS

Mr. Liffard,

Mr. Donald, Treasury Chambers, Parliament Street, SW1P 3AG

Mr. Gillmore ниця NER

1

PRIME MINISTER

TRED),

WED'

01-233 3000

NAD

GUANGDONG NUCLEAR PROJECT

"

aspp

HRR 166/1

(59)

1611/11

See (62)

I have seen Patrick Jenkin's minute to you of 29 October, and we had some

discussion about it at your briefing meeting for the Anglo-French Summit on 1

November.

2. I agree with Patrick Jenkin that there is much to be said for trying to

reach an exclusive agreement with the French. The financial and other risks of

the project would be much less than under the American option, and there is

force in the point which Patrick Jenkin made at your meeting that a deal with

the French should make it possible to avoid a competition with them on financial

terms.

3. As things stand, we have already offered more generous terms than the

French. I also understand that at a recent OECD meeting in Paris the French

would have been prepared to accept a US proposal for banning the use of mixed

credits in relation to exports of nuclear power stations, and that the UK was the

only country which could not accept the proposal. In any discussion of financing

terms with the French I suggest our line should be that we have offered enough

concessions already and would welcome a moratorium on further concessions as

part of any Anglo/French agreement.

4.

I agree with Patrick Jenkin that we may need a collective discussion of the

financing issues after the Summit. I think such a discussion should precede any

move to start negotiating direct with the Chinese for the conventional "island".

5.

I am copying this minute to the other recipients of Patrick Jenkin's minute

of 29 October.

(G.H)

ли

4 October 1982

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