TNAG-0948-FCO40-1167-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 121

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TO PARTICIPATE AT ONCE IN FEASIBILITY STUDIES WHICH THE CHINESE ARE IMPATIENT TO START.

7. IF THE LATTER MAKES PROGRESS LARGE QUESTIONS OF FINANCE AND INSURANCE WOULD ARISE, BUT CLEARLY MINISTERS WILL NOT WISH TO CONSIDER THESE ON THE PRESENT HYPOTHETICAL BASIS. (N.B. THE CHINESE HAVE STILL TO USE THE U.K. 5 BILLION DOLLARS LINE OF CREDIT).

8. I HAVE BEEN SCEPTICAL ABOUT THIS PROJECT. BUT I AM ONLY BOTHERING YOU BECAUSE I AM BEGINNING TO BELIEVE THE CHINESE ARE

SERIOUS, AND CAN UNDERSTAND WHY THEY HAVE CHOSEN THIS SITE FOR A NUCLEAR STATION (FOREIGN EXCHANGE, FOREIGN MANAGEMENT THEY KNOW, CONVENIENT FOREIGN ENGINEERING CAPACITY AND PRESTIGE).

9. MOREOVER SINCE THE IMMEDIATE U.K. COMMITMENT WOULD ONLY BE AS IN PARA 6., IT IS WORTH PAYING TO STAY IN THE GAME.

10. IN ANY CASE THE PRICE IN PARA 6. SEEMS WORTH PAYING TO MAINTAIN KADOORIE'S GOODWILL FOR THE SAKE OF THE FURTHER LARGE CONVENTIONAL PLANT WHICH HE WILL SHORTLY PURCHASE, WE HOPE, FROM

G.E.C.

11. BUT I AM DOUBTFUL IF ENOUGH WILL BE DONE SOON ENOUGH UNLESS MARSHALL GETS VERY STRONG BACKING HENCE THIS APPEAL TO YOU.

12. I HAVE SHOWN TO PETER CAREY WHO AGREES.

MACLEHOSE

FILES

JNU

ES & SD

FED

WED

HK & GD

TRED

PS

PS/MR BLAKER

PS/MR HURD

SIR A ACLAND

SIR D MAITLAND

MR MURRAY

MR PH MOBERLY

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