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tactics CLP stand in a key position. I also attach considerable
weight to the comments made by Vice Premier Gu Mu to Peter Rees
and by Prime Minister Zhao Ziyang to Humphrey Atkins on their
recent visits to Peking, suggesting that other things being
equal the Chinese still favour the French for the nuclear
island and the UK for the conventional island. HM Ambassador in
Peking certainly takes the view that the Chinese are likely to
opt for the French. However, even if we thought it in our
interests to seek to make a pre-emptive bid with the French now,
recent soundings suggest that Framatome are likely to be
reluctant to sign an agreement with GEC at present. The French
say that they think a Chinese decision to go forward with the
project is still a long way off.
5 Turning to the Anglo/American option, which is the one
favoured by the Chairman of the Atomic Energy Authority, Dr
1
Marshall, the fact remains that, despite the statements in Peking
to Peter Rees and Humphrey Atkins there are factions within China
which appear to favour Westinghouse. Indeed, I understand there
has been one bid at provincial level to encourage a team composed
of Westinghouse, GEC, the relevant national nuclear authorities
and Department of Industry officials to visit Guangdong to
explain an Anglo/American package. A formal invitation for such
a visit has yet to be received, and I am advised that in any case
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