TNAG-0948-FCO40-1167-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 185

The Americans

CONFIDENTIAL

5.

GEC and Westinghouse are collaborating successfully on the supply and

er ection of nuclear power stations in Korea and the Americans have presented

their capabilities to the Chinese. Despite the fact that China is already a

nuclear weapons state and hence the terms of the Nuclear Non Proliferation

Treaty are not strictly relevant, the Americans would probably however insist

on safeguards which would be unacceptable to the Chinese. The Chinese are

certainly unlikely to accept inspection of their nuclear installations,

The Japanese

6.

With aid-subsidised credit, the Japanese are having considerable success

in the energy field in China. However while they have a Westinghouse PWR licence and experience of PWR stations (they have built no nuclear stations

outside of Japan and indeed the terms of the Westinghouse licence may preclude the export of PWR technology).

The Germans

7.

Although joint energy studies have been proposed, the Germans have not

so far as we know made overtures to China in the nuclear field and where

nuclear exports have been made as in South America the prices have generally

been high. However an Anglo-German venture cannot be totally discounted.

The French

8.

The French are almost certainly the preferred choice of the Chinese.

They have spent some 15 million French francs on discussions in China, their technical capability is therefore well known; they would not impose unacceptable nuclear safeguard requrements and have apparently offered a complete turnkey

and financial package to the Chinese. Because of their strong position it

will take some effort to persuade the French and perhaps to a lessor extent