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MR. Donald

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Rt Hon Patrick Jenkin MP Secretary of State for Industry Department of Industry

Ashdown House

123 Victoria Street

LONDON SW1

18 February 1982

Dear. Sematary of State

GUANGDONG NUCLEAR PROJECT

Thank you for copying to me your minute of 8 February to the Prime Minister. I have also seen Peter Carrington's minute.

I support your general recommendation and your suggestion that it would be useful for the Prime Minister to write to Lord Kadoorie in the terms you have drafted.

I note that there are some reservations by officials on the timing of an approach to the State Department to seek clearance for NNC to supply Westing- house PWR technology to China. In view of the UK's interest in bringing the UK/Westinghouse option as quickly as possible to a state of readiness for negotiation, I hope you will agree that the approach should be made soon. A firm expression of the State Department's view would enable both NNC and Westinghouse to commit resources to negotiations with greater confidence.

I am copying this letter to the recipients of yours.

Yours

Sincerely

Dand hurly Larby

NIGEL LAWSON

(Approved by the Secretary of State

and signed in his absence)

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