TNAG-0941-FCO40-1160-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1980 — Page 81

CONFIDENTIAL

LORD CARRINGTON'S VISIT TO CHINA: 2-6 OCTOBER

BRIEF NO. 8(d): GUANGDONG NUCLEAR PROJECT

POINTS TO MAKE

1. British Government have followed with close attention discussions

in Guangdong. Project potentially of immense significance to UK/Hong

Kong/China relations. First nuclear power station in China: a most

important example of cooperation between Guangdong and Hong Kong: and

potentially largest ever commercial deal in China involving British

interest.

2. On British/Hong Kong side negotiations have been conducted prin-

cipally by China Light and Power (Kadoorie). Understand that Guangdong

negotiators have sought closer identification with project on part of

British and Hong Kong Governments. If the Guangdong authorities are

seeking reassurance about British and Hong Kong Governments' attitudes,

can assure you this is very positive. Hope to see big British content

in its construction (though cannot supply PWR reactor itself).

3.

Ministerial colleagues will wish to know that Chinese Government

(Peking) attaches same priority to project as Guangdong authorities.

Would therefore welcome statement of Chinese attitude.

4. [Depending on answer to 3. above] We see special significance in

fact project runs over at least 20 years. Glad to find China shares

UK view of project's importance. Many technical, safety, commercial,

and financial questions. Suggest team of British officials visit

Peking and Guangdong soon to follow up, without commitment. Mean-

while will report to Cabinet.

5.

[If asked about equity investment by the British and Hong Kong

Governments] An unusual suggestion. The British Government (while a

shareholder or owner of many industries in UK) does not normally

Nevertheless prepared to consider proposal if

invest overseas.

CONFIDENTIAL

/Chinese