GRS 500
DE DIP
SECRET
SECRET
FM WASHINGTON 032306Z SEP 82
TO PRIORITY F C O
MAKE 19141982 166/1
TELEGRAM NUMBER 2947 OF 13 SEPTEMBE
1982
INFO DOI (FOR MANZIE) AND DEPT OF ENERGY (ROB KELTY).
FOLLOWING FROM GILLMORE
GUANGDONG PROJECT
i am
attending
614
46
meeting in NED at
2.30 today
1. IN THE MARGINS OF MY MEETING TODAY WITH KENNEDY, ON THE PAKISTAN NUCLEAR PROGRAMME, I HAD A PRIVATE DISCUSSION WITH KENNEDY ON THE AMERICAN POSITION OVER THE RELEASE OF WESTINGHOUSE
TECHNOLOGY FOR THE GUANGDONG PROJECT.
2. KENNEDY MADE IT ABSOLUTELY CLEAR THAT IN PRESENT CIRCUMSTANCES IT WOULD NOT BE POSSIBLE FOR THE AMERICANS TO GIVE US THE CLEARANCE WE REQUIRED. HE SAID THAT, IN THE LIGHT OF THE ADMINISTRATION'S ASSESSMENT OF CHINESE INVOLVEMENT IN THE PAKISTAN NUCLEAR WEAPONS
PROGRAMME AND OF THE DUSTY ANSWERS TO U.S. APPROACHES (MIFT), THE
US FACED AN UNAMBIGOUS OBLIGATION UNDER U.S. LAW. THEY COULD
NOT LEGALLY AT THIS JUNCTURE GIVE US THE CLEARANCE FOR WESTING- HOUSE TECHNOLOGY. KENNEDY WAS HOWEVER AT PAINS TO POINT OUT THAT THE U.S. OBJECTIVE IN THE LONGER TERM WAS TO REACH AN UNDER- STANDING WITH THE CHINESE WHICH WOULD MAKE IT POSSIBLE FOR THE ADMINISTRATION TO GIVE US A GO-AHEAD. THEY WERE HOPEFUL THAT THEIR SECOND DEMARCHE IN PEKING WOULD IN DUE COURSE LEAD THE
CHINESE TO REVIEW THEIR POSITION AND, THEY HOPED, AT A MINIMUM,
TO REITERATE AN ASSURANCE THE AMERICANS HAD RECEIVED LAST YEAR, IE THAT ALTHOUGH THE CHINESE GOVERNMENT TOOK THE VIEW THAT IT WAS A MATTER FOR INDIVIDUAL COUNTRIES TO DECIDE FOR THEMSELVES WHAT WAS NECESSARY IN ORDER TO PROTECT THEIR VITAL SECURITY INTERESTS, CHINA FOR ITS PART WOULD NOT GIVE ASSISTANCE TO OTHER COUNTRIES
IN THE DEVELOPMENT OF NUCLEAR WEAPONS.
3. I UNDERLINED THE IMPORTANCE OF THE PRIME MINISTER'S VISIT. IT WAS NOT MERELY A QUESTION OF OUR COMMERCIAL INTERESTS IN THE GUANGDONG PROJECT, IMPORTANT AS THESE WERE. WE WERE VERY CONSCIOUS OF THE HONG KONG DIMENSION OF THE PROJECT: A SUCCESSFUL OUTCOME TO OUR NEGOTIATIONS WITH THE CHINESE ON THIS COULD BE A SIGNIFICANT FACTOR IN OUR SEARCH FOR A LONG-TERM SOLUTION TO THE HONG KONG PROBLEM. I PRESSED KENNEDY ABOUT THE POSSIBILITY OF A POSITIVE ANSWER BEFORE THE PRIME MINISTER'S VISIT. HE WAS FRANKLY DISCOURAGING. HE AGREED, HOWEVER, THAT NOW THE TAIWAN PROBLEM HAD BEEN SETTLED THERE WAS A BETTER POSSIBILITY OF ENGAGING THE CHINESE IN A DIALOGUE ON NON-PROLIFERATION PROBLEMS AND OF REACHING SOME FORM OF UNDERSTANDING WITH THEM. THIS
HOWEVER WOULD TAKE TIME.
SECRET
/H. KENNEDY