(3)

CONFIDENTIAL

Shane

than a very minor part of the liabilities involved.

CLP are strongly opposed to such a package and are adamant they

would not recommend it to their colleagues in the Guangdong Power

Company.

Although Dr Marshall considers that one of the Korean PWR

stations built by GEC and Westinghouse could be presented to the Chinese

as a reference plant to support the viability of this option, CLP are

likely to consider it unproven, particularly since NNC will carry the

responsibility of adapting the Korean plant designs to the Chinese site.

Lord Kadoorie has specifically warned Lord Weinstock that he is anxious

to avoid such a "hybrid proposal under the guise of a British package"

being submitted to the Chinese;

(4) Moreover, messages received through CLP suggest that at least some of

the Chinese authorities whose views will be influential in any major

decision are strongly opposed to an Anglo/American package. It has

been suggested that the Head of the Nuclear Bureau intends to indicate

his opposition to such a proposal to the Embassy in Peking;

(5) Pursuing an alternative option with the Americans may encourage the French

to make an all French pre-emptive bid with the French turbine company,

Alsthom, supplying the conventional island.

CONFIDENTIAL

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