Ehler (55
P.c
GR 350
CONFIDENTIAL
CONFIDENTIAL
Hiere 1661 1
FM BTC HONG KONG 200630Z OCT 82
TO ROUTINE DOI
Mr. Hoare 7421/10
Angleton's
We and keep a
careful eye
in this
> Plan 2stio
TELEGRAM NUMBER INDUS 175 OF 20 OCTO
AND TO ROUTINE PEKING
INFO SAVING PARIS, WASHINGTON
FOR MANZIE
GUANGDONG NUCLEAR PROJECT.
LORD KADOOR IE'S FERTILE MIND HAS AGAIN BEEN AT WORK ON THE
EQUITY PARTICIPATION QUESTION. HIS LATEST SOLUTION IS FOR
THE HONG KONG GOVERNMENT TO TAKE A 40 PERCENT INTEREST IN THE
JOINT VENTURE AND TO GUARANTEE REPAYMENT OF 40 PERCENT OF
THE LOANS FOR SO LONG AS HONG KONG REMAINS UNDER BRITISH
ADMINISTRATION.
2. LORD KADOORIE DISCUSSED THIS PROPOSAL WITH THE GOVERNOR ON
15 OCTOBER AND LEFT A PAPER WITH HIM (COPY BY BAG). ACCORDING
TO LORD KADOOR IE THE GOVERNOR UNDERSTANDABLY REAFFIRMED THE
HONG KONG GOVERNMENT'S DOCTRINAL RELUCTANCE TO TAKING EQUITY.
HE ALSO STRESSED THE NOVELTY AND RISK OF A VENTURE IN CHINA.
3. IN DISCUSSION WITH LORD KADOORIE BEFORE AND AFTER HIS MEETING
WITH THE GOVERNOR | REMINDED HIM OF THE BRITISH GOVERNMENT'S
STRONG VIEWS ON NOT THEMSELVES TAKING EQUITY. KADOORIE DID
NOT DISPUTE THIS AND HIS APPROACH TO THE GOVERNOR IS A REFLECTION
OF HIS TEMPORARY ACCEPATNCE OF IT. HOWEVER I SUSPECT THAT THIS
PRESENT MOVE IS BETTER INTERPRETED AS A STEP TOWARDS HIS
PREFERRED SOLUTION WHEREBY, DEPENDING ON THE EVENTUAL PACKAGE,
THE BRITISH, FRENCH AND HONG KONG GOVERNMENTS COULD TAKE THE
LION'S SHARE AND CLP ABOUT 4 PERCENT. HE ALSO STILL HOPES FOR A
ROLE FOR EXXON WHOM THE CHINESE HAVE APPARENTLY ASKED TO
CONTRIBUTE EQUITY.
4. I HOPE TO DISCUSS THE ABOVE WITH THE GOVERNOR SHORTLY.
CANNOT SEE THE HONG KONG GOVERNMENT CHANGING ITS NEGATIVE STANCE
BUT I UNDERSTAND THAT THE PROPOSAL IS BEING GIVEN SERIOUS
CONSIDERATION AND MAY BE PUT TO THE EXECUTIVE COUNCIL.
FCO PLEASE PASS SAVING ADDRESSEES.
ADAMS
LIMITED
RIPEATED AS REQUESTED
ADDITIONAL DISTN GUANGDONG NUCLEAR
THIS TELEGRAM
WAS NOT
ADVANCED
FED
NED
TRED
HK OG D MR.GIFFARD MR DONALD MRGILL MORE
CONFIDENTIAL