7

Officials renewed informal discussions with French officials

on 20 October. The French said that the Chinese have asked for

separate bids from Alsthom and Framatome.

Exclusive

And

GEC/Framatome co-operation could not be contemplated unless the

Chinese specifically requested such a bid. Although the French

were concerned about the implications of price and credit

competition for the conventional island business, they maintained

that they were responding to the requests of the customer.

it would be difficult for the French Government publicly to

indicate any willingness to exclude Alsthom: Alsthom have a

substantial plant at Belfort in the electoral area which M

Chevenement represented until recently. However, in discussion

with my officials and GEC, Framatome have said that they would

prefer to work with GEC.

8 Despite this negative response at official level, I consider

we should press the advantages of a GEC/Framatome exclusivity

agreement to our opposite numbers at the Anglo-French summit

since the arguments for Anglo-French co-operation are very

strong. However, it is still possible that US policy on nuclear

exports to China could change rapidly for wider political

reasons. To discard the Anglo/American option would deprive UK

industry of an important chance of using the project to build up

its PWR capacity and experience and of obtaining a foothold in

export markets: only if we are able to secure an exclusive

agreement with the French should we close the door on the

American option.

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