DSR 11' (Revised)
to me
witt
submission
DRAFT:
minute/letter/teleletter/despatch/note
FROM:
I R Kenyon
DEPARTMENT:
NED
SECURITY CLASSIFICATION
Top Secret
-Secret
Confidential
TO:
Mr Gillmore
Mr Wright PS/Mr Hurd
TEL. NO:
pps pse
TYPE: Draft/Final 1
Reference
Your Reference
Copies to:
7
Unclassifed
PRIVACY MARKING
SUBJECT:
PROBLEM
..In Confidence
1.
CAVEAT..
Enclosures-flag(s)......
GUANGDONG NUCLEAR POWER STATION
A very substantial contract is in prospect for the
sale of a nuclear power station, using a Westinghouse-type
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. The total value of the UK input could reach US $2
billion. Recent negotiations have gone well and there is not
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.
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 they will provide assurances against
any explosive use and they will give us right of prior
Cand technology ?] of fissile materials
consent over retransfer
sufficient?
Is this
CONFIDENTIAL
/3.