MNS 160/1
Mr Wright
PS/Mr Hurd
Covering SECRET
Mr Mons
Pr
30
HICK
16611
4/2017
я сторову
GUANGDONG NUCLEAR POWER STATION
PROBLEM
1.
See 131
32
A substantial contract (worth up to US $2 billion to the UK) is in prospect for the sale of a nuclear power station, using a Westinghouse pressurised water reactor (PWR) to the Peoples Republic of China. The UK would supply the whole of the conventional island, incorporating the turbogenerator and ancilliary equipment together with up to 60% of the nuclear island. There would also be opportunities for the sale of nuclear fuel. Recent negotiations have gone well and there is now a prospect that the Prime Minister might be asked to sign some form of agreement to proceed with the project when she visits Peking during the second half of September.
2.
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The difficulties arise with the nonproliferation aspects of the sale. The Chinese insist that they will not accept IAEA safeguards or any other form of inspection procedures, although we expect they would provide assurances against any explosive use and give us the right of prior consent over retransfer of fissile materials. Is this sufficient?
3.
Furthermore, Westinghouse will require US Government agreement for the supply of their technology via NNC and BNFL to the PRC. This has not, so far, been granted and considerable difficulties are likely with Congress. The French company, Framatome, a potential competitor already has US approval.
CONFIDENTIAL Covering SECRET
/4.