13 If we cannot secure an agreement with the French we should

inform Westinghouse and NNC of the views expressed to you in

China, but make no move beyond this so that the door remains open

on the Anglo/American option.

14

If we cannot reach agreement with the French, we should

negotiate direct with the Chinese for the conventional island

only.

15 We should formally invite Li Peng to visit the UK. In the

light of French moves, officials should prepare a paper on

financing terms for Ministerial consideration before discussions

with the Chinese begin.

16 Given the continuing uncertainties surrounding the project I

do not think we can take our strategy further at present. Much

depends on the French.

17 I am copying this minute to Francis Pym, Geoffrey Howe, Nigel

Lawson, Arthur Cockfield, Leon Brittan and Sir Robert Armstrong.

P J

29 October 1982

Department of Industry

ENC

Share This Page