INFORMATION CONFIDENTIAL

be the most favoured, GEC do not consider that a final choice of

prospective partner can be made until there has been further

Given the uncertainties surrounding

contact with the Chinese.

the project, GEC consider flexibility must be the keynote to our

strategy. Dr Marshall agrees with this, even, though he favours

an Anglo/American approach.

9 If you and the other colleagues to whom I am copying this

letter agree with this general recommendation I suggest we would

seek to offer reassurance to CLP that the Government's position

remains one of holding open both options until such time as the

Chinese provide a clear indication. of their preference. The best

way of doing this might be for you to write to Lord Kadoorie on

the lines of the attached draft.

10 I am copying this minute to Peter Carrington, Geoffrey Howe,

John Biffen and Nigel Lawson, and in view of his interest, to

Michael Jopling.

Department of Industry

P.J

P J

February 1982

INFORMATION CONFIDENTIAL

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