TNAG-0948-FCO40-1167-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 151

Draft Telex

CONFIDENTIAL

DRAFT TELEX TO I M A PEKING

QUANGDONG NUCLEAR POWER PROJECT

#

cc BTC Hong Kong

1

We have already sent by bag a copy of the interdepartmental

report as circulated by my Secretary of State. We now have

ministerial endorsement on the line proposed and specifically the non-

proliferation and foreign policy aspects.

2

As the paper makes clear, there are a number of issues:

a) A successful contract would be of great importance,

both to Chinese/Hong Kong relations and also to the hard pressed

British heavy electrical engineering industry.

The

proliferation issue is however an important consideration.

b)

China is already a Nuclear Weapons State (NWS) and

there is no requirement under the Non-Proliferation Treaty

(NPT) for such states to accept safeguards on their civil

nuclear facilities; nor any obligation on a supplier country

to insist on a NWS accepting safeguards.

c) In any event, even if a UK firm were appointed project

leader, the K could not at present supply the actual heart

of the reactor-the NSSS.

a) The Chinese authorities have made it clear that they will

not accept inspection of their nuclear installations, and the

French have already assured the Chinese that they would require