CONFIDENTIAL
ANNEX 3
ARGUMENTS FOR AND AGAINST AN ANGLO-FRENCH OR ANGLO-US PACKAGE
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FRAMATOME
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The arguments for a partnership with Framatome are:
(1) Through the initiative taken by President Giscard d'Estaing in
1980 the French established a strong position in Peking and the
recent statements to visiting British Ministers suggest that the
French remain the favoured nuclear partner;
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(2) CLP and Lord Kadoorie in particular
77.
favour a partnership wi
the French because they believe this has the best chance of success
(3) GEC consider the French are more likely to obtain the nuclear
island, for the reasons set out above;
(4) The French are likely to be able to offer more competitive
financial terms than the Americans.
weigh heavily with the Chinese;
It is clear that this would
(5) A good deal of preparatory work on thic option has been complcted:
an agreement between GEC and Framatome to work together on the
project has been drafted but not signed;
(6) Working with Framatome is likely to raise less problems on
apportioning liability for the plant's performance and safety;
Framatome are expected to be willing to accept liability for the
whole nuclear island. Westinghouse have said that they are willi
to accept a similar liability but it remains to be seen whether
CONFIDENTIAL