TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 78

GPS 2660

CONFIDENTIAL

DESKBY DOI 251400Z

CONFIDENTIAL

FM B T C HONG KONG 250955Z JUL 80

TO IMMEDIATE DO I

TELEGAM NUMBER INDUS 144 OF 25 JULY

INFO IMMEDIATE PEKING FCO.

PETERSON RESISTRY NO. 31 7 8 JUL 1980

PA

REGISTRY Action Taku

DESK OFFICER

INDEX

No

FOR MANZIE DEPUTY SECRETARY.

A.

YOUR INDUS 210.

GUANGDONG NUCLEAR PROJECT.

see (70)

MIFT CONTAINS THE NOTES TO WHICH KADOORIE WILL SPEAK WHEN HE MEETS THE PRIME MINISTER ON JULY 30. HE REQUESTS THAT, IN ORDER TO SAVE TIME, THE PRIME MINISTER SHOULD SEE THEM BEFORE HIS ARRIVAL.

I HAVE SO PROMISED: OTHERWISE HE WILL READ IT IN FULL.

2. I HAVE REITERATED YOUR CONCERN ABOUT COMMITMENTS ON FINACNE

AND LIABILITIES TO KADOORIE. HE DENIES STRENUOUSLY THAT HE OR

MARSHALL HAS COMMITTED HMG AND SAYS THAT HE HAS MADE IT CLEAR THAT THE PURPOSE OF HIS VISIT TO LONDON IS TO CONSULT THE GOVERNMENT.

HE REMINDS ME THAT THE FRENCH AND GERMAN AAMBASSADORS HAVE MADE REPRESENTATIONS IN PEKING AND GUANGDONG ABOUT THEIR GOVERNMENTS'

WILLINGNESS TO BACK THE PROJECT. HE BELIEVES THAT THE FRENCH HAVE OFFERED 85 PER CENT OF THE FOREIGN LOANS REQUIRED AT 3 PER CENT

INTEREST AND THE REMAINING 15 INTEREST -FREE. THIS IS NO DOUBT PART OF THE COMMERCIAL BARGAINING BUT KADOORIE AND STONES ARE NOW

CONTRASTING OUR HESITANCY WITH THE APPARENT RESOLUTION OF OUR COMPETITORS. IF THEY BECOME TOO DISULLUSIONED WITH OUR RESPONSE,

THEY COULD EASILY CEASE TO REGARD US AS SERIOUS CONTENDERS FOR THE PROJECT. SUCH A DEVELOPMENT WOULD OF COURSE SOUR THE ATMOSPHERE FOR NEGOTIATIONS ON CASTLE PEAK B STATION.

3. YOU MAY LIKE TO KNOW THAT I SHALL BE IN PEKING FOR MY APPROVED LIAISON VISIT FROM AUGUST 5-9 AND WOULD THEN HAVE AN OPPORTUNITY TO DISCUSS THE PROJECT IN DETAIL WITH THE EMBASSY.

MARCH

FILES

JNU

ADDITIONAL DISTN.

GUANGDONG NUCLEAR

HK&GD

FED

TRED

MR PH MOBERLY

CONFIDENTIAL