TNAG-0948-FCO40-1167-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 80

FCS/80/58

MON 166/301

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CONFIDENTIAL

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PS/RNS 5/hr/islaker for & Moberly Ihr Murray.

SECRETARY OF STATE FOR INDUSTRY

22

Guandong Nuglear Power Station:

People's Republic of China

I agree that the project referred to in your letter of 18 February is worth pursuing along the lines suggested by officials. I am generally content with the recommendations on the handling of the safeguards issue, but we shall want to look

carefully at the instructions to HM Ambassador at Peking arising

out of paragraph 13 of the detailed note. The Indians will be

worried if we sell a reactor to China without the usual IAEA

safeguards which we know the Chinese would not accept, but at

this stage we can meet any Indian concern with the response. that

we have not even started serious discussions with the Chinese on

the non-proliferation aspects. We should in any case seek to encourage the Chinese to take a more active interest on proliferation

questions, particularly in Asia.

It is clearly for the government rather than industry to discuss non-proliferation questions with the Chinese. As regards ensuring that our interests are taken into account in the commercial negotiations, it is important that China Light and Power (CLP) and the Chinese accept that this must be done (especially if we think

we are contributing financially). But I think we should be flexible over how it should be done, and prepared to take account of the

views both of the CLP and the Chinese on the nature of the proposed

project, which could make overt British Government participation difficult. I agree that a Ministerial meeting is probably unnecessary

I am copying this minute to the recipients of yours.

Foreign and Commonwealth Office

14 March 1980

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(CARRINGTON)

CONFIDENTIAL