I
HK Section
FROM THE
MINISTER OF STATE
FOR INDUSTRY AND
INFORMATION TECHNOLOGY
KENNETH BAKER MP
Peter Rees Esq QC MP Minister for Trade Department of Trade 1 Victoria Street SW1
сс
Mr. Job!
Dear it! Rees,
Аткада
NED.
Сс
P.A.
The propo
36
DEPARTMENT OF INDUSTRY
ASHDOWN HOUSE
123 VICTORIA STREET
LONDON SW1E 6RB
TELEPHONE DIRECT LINE 01-212
SWITCHBOARD 01-212 7676
PS/SOS
6401
Mr Manzie
Mr Benjamin PEP
Mr Salvidge PEP4
Mr Hutton
PEP1
Mr Havelock MEE (on file)
Mr Cox FED/FCO
Pas 1118
August 1982
GUANGDONG NUCLEAR POWER PROJECT
I have been taking a close interest in developments on the Guangdong project not least because of the potential to bring orders of over £1,000m to UK industry.
I learn that GEC have sought Government assistance through the OPF to offset some of the pre-contractual costs they estimate they will incur in pursuit of the conventional island contract. I understand the OPB panel considered that the prospects of securing the project were slim, but did however recognise that there were political factors which they were unable to judge.
My officials have recommended that taking account of the political indications, and the importance of securing this valuable and important contract, OPF assistance up to a maximum of £411,000 should be made available to enable GEC to maintain their wholehearted pursuit of this opportunity.
I myself attach great weight to the success of GEC in this project because the winning of this contract would provide much needed work of approximately 22-24,000 man years for GEC and their sub-contractors, mainly in areas of high unemployment, at a time when orders are very limited. It would enable the UK to get into the market for large high speed turbines for PWR plant, an area where the UK has no previous experience, and it would secure a foothold in the Chinese market where future orders for turbines may be considerable.
Given the political overtones, together with the strength of the industrial case, I would therefore strongly support provision of assistance from the Overseas Projects Fund for this project. I am copying this letter to John Belstead..
J
Surerily
APPROVED BY THE MINISTER AND SIGNED IN HIS ABSENCE
M55/M55AAC