CONFIDENTIAL

DSR 1 (Revised)

DRAFT:

minute/lettes/teleletter/degrathinolex

FROM:

Secretary of State

DEPARTMENT:

SECURITY CLASSIFICATION

TO:

Prime Minister

Top Secret

Secret

Confidential

Restricted

Unclassified

PRIVACY MARKING

..In Confidence

CAVEAT.

Enclosures-flag(s)...

TEL. NO:

SUBJECT:

GUANGDONG NUCLEAR POWER STATION

TYPE: Draft/Final 1+

Reference

(MNS 160/1)

Your Reference

Copies to:

1. I have considered the case for pursuing the contract

to supply parts of a nuclear power staiton to be built

in the Guangdong Province in the People's Republic of

China, and for supplying nuclear fuel for the power

station.

2. I consider that the commercial considerations of

possible export opportunities up to US$2 billion, and

the political advantages of co-operation with the PRC

on such a scale with attendant advantages for the stability

of Hong Kong, outweigh any damage to the credibility of

our non-proliferation policies, particularly since China

is already a nuclear weapon state and acquisition of the technology and material involved would not enhance her

nuclear weapon capability.

3. I am copying this letter to OD colleagues, Sir Robert Armstrong, and the Secretaries of State for Energy and

Industry.

CONFIDENTIAL

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