ddressed to:

DRAFT

CONFIDENTIAL

File No.

Copies to: PS/Mr Baker

PS/Mr MacGregor PS/Secretary

Sir Robert Armstrong

Mr Manzie

Prime Minister

Mr Benjamin

Mr Havelock (on file)

Originated by:

(Initials and date)

Enclosures:

*

DEPARTMENT OF INDUSTRY

GUANGDONG NUCLEAR PROJECT

In response to your request, I submitted to you on 8 February 1982

my assessment of the situation on the Guangdong project. I reported

further on 15 April 1982 following the visit to the UK of a delegation

from the Guangdong Power Company (GPC) and the China Light and Power

Company Limited (CLP). That visit confirmed GEC's technical

competence. It was agreed at that time that a UK delegation should

make a return visit for further talks later in the year with GPC

and CLP.

2

A UK delegation has now returned from such a visit to China.

One of my deputy Secretaries led a team, including ECGD, GEC Turbine

Generators Ltd, J Henry Schroder Wagg and British Nuclear Fuels Ltd

to Guangzhou for four days of talks held 28 June - 4 July 1982.

3

I consider their reception by he Vice Governors from the

Guangdong Provincial Government and the senior Vice Minister from

the Ministry of Water Conservancy and Electric Power from Peking

to be an indication of the importance the Chinese attach to the

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