TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 81

GRS 300

CONFIDENTIAL

DESKEY 250001Z

CONFIDENTIAL)

HKK 166/1

RECEIVED IN REGISTRY NO. 51 2 8 JUL 1980

DESK OFFICER

INDEX

No!

PA

RSTYR 2917

REGISTRY Action Tek

FH DTI 24130OZ JUL 30

TO IMMEDIATE ETC HONG KONG

TELEGRAM NUMBER INDUS 210 OF 24 JULY 80

AND TO IMMEDIATE PEKING

FOR MARCH FROM MANZIE.

1. IN OUR INDUS 206 WE MADE IT CLEAR THAT MARSHALL WAS NOT

ENTITLED TO MAKE ANY COMMITTMENT ON BEHALF OF HMG, AND THAT HE SHOULD RESTRICT HIMSELF TO TECHNICAL MATTERS. ALSO THAT NO

GENERAL COMMITMENTS CONCERNING HMG'S ATTITUDE COULD BE MADE

GIVEN THE PRESENT AUTHORITY FROM MINISTERS. WE WERE THEREFORE

RATHER DISTURBED TO SEE IN YOUR BTC 101 (PARA 2) THAT SLK IS

STILL SUGGESTING HMG EQUITY PARTICIPATION: OUR VIEW, SUBJECT TO CONFIRMATION BY MINISTERS, IS THAT THIS IS A QUESTIONABLE AND

POTENTIALLY VERY DIFFICULT COURSE, BUT NOW THAT SLK HIMSELF HAS

FLOATED THE IDEA WE MAY HAVE SERIOUS PROBLEMS WITH MINISTERS HERE.

THIS PROBLEM IS REINFORCED BY THE EXPLICIT ADDITION TO STONE'S

PAPER MENTIONED IN YOUR PARA 6. WE WILL BE SEEKING THE VIEWS OF HONG KONG GOVERNMENT AS TO THEIR POSSIBLE EQUITY INVOLVMENT.

2. CUR VIEW ON GUARANTEES FOR LOANS, EXPRESSED IN OUR INDUS 193, IS THAT THE DANK OF CHINA WILL HAVE TO GUARANTEE 100 PER CENT OF LOANS, INCLUDING THOSE FROM ECGD. YOUR PARA 7 IMPLIES CTHERWISE.

3.

MARSHALL APPEARS TO HAVE EXCEEDED HIS BRIEF BY ACCEPTING

THAT UK WOULD HELP FORMULATE SAFETY STANDARDS. NII DOES NOT HAVE

THE RESOURCES, AND THERE IS THE PROBLEM THAT UK HAS NO PWR

EXPERIENCE YET.

4. IT IS IN THE AREA OF INSURANCE AND LIABILITIES THAT WE ARE MOST UKHAPPY. AS WE SAID IN OUR INDUS 206, WE WOULD PREFER THAT THE

CELIGATION TO ACCEPT DISASTER LIABILITY SHOULD REST SQUARELY

WITH THE NUCLEAR ISLAND SUPPLIER, WHICH WILL NOT BE THE UK.

VARSHALL HAS NO BRIEF TO OFFER UNAEA ASSISTANCE TO CLEAN UP

FREE OF CHARGE

-

A CRIPPLED REACTOR.

CONFIDENTIAL

/5. WE FIND

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