expressed this view to my officials, Lord Kadoorie and Sir
Walter Marshall;
c) co-operation with the French would reduce ECGD's
financial exposure to about £1000m from £4000m for an
Anglo-American proposal. The absolute cost of any
concessions on financial terms would be reduced. And
perhaps most important, we would avoid being played off by
the customer against the French on Finance terms;
d) we could try to secure UK participation in the fuel
supply through negotiation with the French; if we negotiate
with the Chinese for the conventional island business only,
British Nuclear Fuels Limited will have little opportunity
to secure contracts which could establish them in the
international PWR fuel market;
e) if the French were to supply the nuclear island they
would carry the primary responsibility for securing
non-proliferation assurances though the UK could also be
involved in negotiating assurances if we supply fuel.
Present indications are that, unlike the Americans, the
French would be satisfied with a statement from the Chinese
which the Chinese are willing to give that the station
would be used only for peaceful purposes.