TNAG-0948-FCO40-1167-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 120

GR 500

SECRET

SECRET

HKK 166|1

RECEIVED

•22

DESKBY 310938 Z

FM HONG KONG 300128Z MAR 80

TO IMMEDIATE FCO

TELEGRAM NUMBER 466 OF 30 MARCH

PERSONAL FOR PUS FROM GOVERNOR

NUCLEAR POWER STATION

INDEX

•

1.4

A

Spike A Fr. Robert

TNU. I said

a) we fached the Govern

we wind like

THE CHINESE HAVE A PROJECT FOR A NUCLEAR POWER STATION NEAR HONG

KONG WHICH WOULD BE A F.W.R., TO BE MANAGED BY SIR LAWRENCE KADOORIE'S FIRM. ITS OUTPUT WOULD BE SPLIT BETWEEN GUANGDONG

PROVINCE AND SIR LAWRENCE KADOORIE'S SUPPLY SYSTEM IN HONG KONG,

AND PAID FOR IN PART BY REVENUE FROM HONG KONG. THIS PROJECT HAS GATHERED RAPID MOMENTUM AND A DEGREE OF CREDIBILITY. THE FRENCH

ARE VIGOROUSLY IN THE FIELD.

Cleased INL's doeft reply jelgram. A

REMR

2/4.

2. ON THE FACE OF IT THE FRENCH HAVE A LARGE LEAD, BECAUSE THEY

OPERATE P.W.R. STATIONS AND ARE GEARED TO MAKE THEM. BUT FOR TECHNICAL REASONS CONNECTED WITH SAFETY AND RELIABILITY WHICH WOULD REQUIRE RE-DESIGN OF CURRENT FRENCH MODELS, WE COULD STILL WIN - IF WE MOVE SUFFICIENTLY FAST AND DECISIVELY (SEE PARA 6).

-

3. IF WE DID WIN IT WOULD BE A COMMERCIAL COUP OF A HIGH ORDER WITH SUBSTANTIAL INDIRECT POLITICAL AND FURTHER COMMERCIAL

IMPLICATIONS. IF WE LOST THE AFFECT WOULD BE A SUBSTANTIAL MINUS,

PARTICULARLY IF WE LOST THROUGH FAILURE TO SHOW WILLING IN THE

FACE OF APPARENT CHINESE URGENCY.

よ I seen

see what

then

put up Ji Pus

4. HONG KONG HAS STRONG LEVERAGE BECAUSE WE COULD KILL THE PROJECT'S

VIABILITY BY REFUSING A SUPPLY THAT WAS EITHER UNRELIABLE

CR NOT OF HIGHEST SAFETY STANDARDS (IF WITHIN DISASTER RANGE) (SEE PARA 2). BUT CRUDE APPLICATION OF THIS LEVERAGE WOULD NOT DO AND WE SHOULD TRY HARD TO CONVINCE THE CHINESE OF THE TECHNICAL

ARGUMENTS IN FAVOUR OF A BRITISH LED P.W.R. PROJECT IN WHICH THEERE

COULD BE VERY SUBSTANTIAL U.K. CONTENT.

5. DR. MARSHALL, DEPUTY CHAIRMAN OF THE ATOMIC ENERGY AUTHORITY,

HAS PARTICIPATED IN THE ROUND OF NEGOTIATIONS JUST CONCLUDED

AND UNDERSTANDS THE TECHNICAL SIDE. IN VIEW OF THE IMPORTANCE OF THE SCHEME TO HONG KONG, AND I THINK U.K., I WOULD BE MOST GRATEFUL

IF YOU COULD GET HOLD OF HIM AND HEAR HIS APPRAISAL. HE IS

RETURNING SHORTLY TO THE U.K.

6. BECAUSE OF PARA 4. THE IMMEDIATE REQUIREMENT IS TO BACK DR.

MARSHALL'S REQUESTS FOR THE ALLOCATION OF A FEW TECHNICAL STAFF

SECRET

/ TO PARTICIPATE

31/

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