CONFIDENTIAL
ANNEX B
ARGUMENTS FOR AND AGAINST AN ANGLO-FRENCH OR ANGLO-US PACKAGE
A
FRAMATOME
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;
(2)
-
CLP and Lord Kadoorie in particular
- favour a partnership with
(3)
the French because they believe this has the best chance of success;
The French are likely to be able to offer more competitive financial
terms than the Americans. It is clear that this would weigh
heavily with the Chinese;
(4) Preparatory work on this option is well advanced: an agreement
between GEC and Framatome to work together on the project has been
drafted but not signed.
(5) 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 while
ability to carry liability may be handicapped because
Westinghouse's
of the need to work through their UK licensee, the National Nuclear
Corporation (NNC);
CONFIDENTIAL