M
From the Private Secretary
Joy Your Com
10 DOWNING STREET
FED
RojuPS
La m
Mr Donaid
fur Gillmore
HKGD
NED
topps
26 February 1982
bute.
1.
2.kr
3. 2/3
Sirf Youde
3
Guangdong Nuclear Power Project
k
See (13)
The Prime Minister has now been able to consider your Secretary of State's minute of 8 February and the subsequent minutes by the Foreign and Commonwealth Secretary, the Secretary of State for Energy and the Chief Secretary to the Treasury.
The Prime Minister broadly agrees with the advice contained in these minutes. She takes the view that it would be wrong to close the option of a UK/US package. She believes that the French might then try to take the whole contract and has observed that our experience with them on collaborative projects has not been - good. Furthermore, a resolution of the current political problems
between the United States and China could lead to the Americans being preferred as contractors. In that case we should get a bigger share of the available work.
The Prime Minister has therefore written to Lord Kadoorie on the lines of the draft annexed to your Secretary of State's minute. I enclose a copy with this letter.
I am copying this letter and enclosure to the Private Secretaries to the Foreign and Commonwealth Secretary, the Secretary of State for Energy, the Chief Secretary to the Treasury and Sir Robert Armstrong.
Jonathan Spencer, Esq., Department of Industry
CONFIDENTIAL