TNAG-0948-FCO40-1167-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 69

Secretary of State for Industry

The Rt Hon the Lord Carrington KCMG MC Secretary of State for

Foreign and Commonwealth Affairs HM Diplomatic Service Foreign and

Commonwealth Office

Downing Street

London SW1A 2AL

Scan Purn.

Ity UNU

For advice pope.

22

PS

DEPARTMENT OF NDUSTRY P/LPS

ASHDOWN HOUSE

123 VICTORIA STREET

LONDON SWIE 6RB

TELEPHONE DIRECT LINE

P3/MrB PS/PUJ

01-212 3301 Mar Carts

SWITCHBOARD 01-212 7676

13 February 1980

MEN 164/Boil

RECEIVED IN REGISTRY NO. 75

FEB 1980

PRICEA

REGISTRY Action Taken

toop

GUANGDONG NUCLEAR POWER-STATION, PEOPLE'S REPUBLIC OF CHINA

On 25 October last year at the time of Chairman Hua's visit, I informed you and colleagues of possible UK involvement in the construction of a nuclear power-station in the Chinese Province of Guangdong. Under the proposal a joint venture for the construction and operation of the station would be established between Guangdong Electricity Company and the China Light and Power Company of Hong Kong (CLP), with Hong Kong taking about half of the station's output.

Lord Bui Mor Mun

Miss Br

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ESS.D

TRED FRO

Since then officials have been reviewing developments, keeping closely in touch with both CLP and the Hong Kong authorities. The attached report, which reflects the views of UK Departments as well as the Hong Kong authorities, proposes that the UK should continue its close involvement in the project and recommends

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a line to take with the Chinese on the issue of nuclear safeguards.

Although there must be some uncertainty as to whether the project will even receive assent from Peking, it offers the potential for £380m worth of export business to our power-plant manufacturers in a situation where the Hong Kong connection should be an important asset. I consider it is, therefore, worth pursuing along the lines set out in the report by officials, provided you are content with the recommendations on how the issue of nuclear safeguards should be handled.

If you agree the line proposed, I doubt if a Ministerial meeting is necessary.

/I