TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 67

CONFIDENTIAL

Kong.

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10. The project offers considerable commercial opportunities to our power plant industry. With total project costs estimated at US $ 3500M, UK industry could secure a major share of the hard- ware, probably about 1,000M. The question of finance is likely

ey element in the joint venture. SLK may raise with the PM the possibility of UK support, including participation in equity and some responsibility for nuclear disaster liability. A Whitehall Committee is studying all aspects of the project and will be reporting to Ministers in due course.

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11. This project is clearly one of great potential and commercial significance. It will need the most careful handling.

LINE TO TAKE

12.

On Castle

Peak "A"

On Castle

Peak "B"

On

Guangdong

Understand good progress is being made. Reaffirm HMG's commitment to ensuring the timely completion of this show-piece project.

Reaffirm HMG's desire to see a negotiated contract with the UK but give no firm commitment of financial support.

Assure SLK that HG has very much in mind the long term interests of Hong Kong and of China/ Hong Kong/UK relations and is keeping a close watch on developments: express interest in the Guangdong project; promise to consider what role HMG might play in bringing the project to fruition, to the mutual benefit of Hong Kong and the UK, including UK industry.