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Covering SECRET
RECOMMENDATION
4.
Successful conclusion of this contract would lead
to significant export opportunities (up to US $2 billion) for
British companies seeking to participate in the US $5 billion
project. Success here would also provide a foothold in the Chinese market. There would be benefits to long term relations
between UK and PRC and more particularly, between PRC and
Hong Kong, These commercial and political advantages would
outweigh the damage to the credibility of our nonproliferation
policy which will result from an apparent retreat from our long-held position on nuclear transfers, I recommend:
(a)
that we do not object to the contract
on nonproliferation grounds, but strive
for the best possible set of assurances
from the Chinese;
(b)
that we press the US government to agree to
use of Westinghouse technology by NNC and BNFL.
FED, HKGD agree.
The Departments of Energy and Industry have
seen this submission in draft and their comments have been taken
into account.
CONFIDENTIAL Covering SECRET