CONFIDENTIAL

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DSR 11C

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transfer of US technology which would be involved in any

(or purely French)

UK/French/deal.

On 14 April, Mr Pakenham of the British

Embassy in Washington wrote on instructions to Mr Marshall of

the US State Department seeking similar assurances in

respect of a possible UK/US deal, which would also involve

the supply direct from Westinghouse of the power station's

nuclear steam supply system. The Americans have not yet

replied formally to this request, but in his letter of

29 June to Mr Haskell, Mr Bloom of the US Embassy in London

indicated that they were concerned over the proposed lack of

safeguards and over Chinese export policies and attitudes

to non-proliferation, and that they foresaw difficulties

with Congress. In response to a request from the FCO,

Embassy Washington have given their appreciation of the

situation within the US Administration regarding the review

of nuclear export policy towards China.

they should speak to Under Secretary Kennedy and they foresee

the possible need for a Ministerial message.

UK Non-Proliferation Policy

They propose that

4. This aspect of the proposed contract was last

considered by British Ministers on the basis of Mr Alston's

submission of 25 February 1980. Paragraph 9 of that

submission referred to non-proliferation issues, which were

covered at greater length in paragraphs 8 to 13 of the note

CONFIDENTIAL

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