CONFIDENTIAL
2
DSR 11C
3.
Furthermore, Westinghouse will require US Government
agreement for the supply of their technology to the PRC.
This has not so far been granted and considerable difficultie
are likely when the matter is put to Congress.
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 non-proliferation policy which will result from an
apparent retreat from our long-held position on nuclear
transfers. I recommend :
(a)
(b)
-
that we do not object to the contract on non-
proliferation grounds, but strive for the best
possible set of assurances from the Chinese;
that we press the US government to agree to use
of Westinghouse technology by NNC.
FED, HKGD, TRED agree.
CONFIDENTIAL