TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 110

"CONFIDENTIAL

GUANGDONG NUCLEAR PROJECT

POINTS TO MAKE

1

British government have followed with close attention discussions in Guangdong. See project as one of immense significance to UK/Hong Kong/China relations. First nuclear power station in China: a most important example of cooperation between Guangdong and Hong Kong: and potentially largest ever commercial deal in China involving

British interests.

2 On British/Hong Kong side negotiations have been conducted principally by China Light and Power (Kadoorie) with technical assistance and expertise provided by Dr Walter Marshall in a personal capacity supported by a team from UKAEA. Understand that Guangdong negotiators have sought closer identification with project on part of British and Hong Kong governments. If Guangdong authorities are seeking reassurance of British and Hong Kong governments' attitude can assure that this is very positive in expectation of major benefits to UK industry.

3

Ministerial colleagues will wish to know if Chinese government (Peking) attaches same priority to project as Guangdong authorities.

Would therefore welcome statement of Chinese attitude.

4

Depending on answer to 3 above7.

Glad to find China shares UK view of project's importance. Many technical, safety, commerce, financial questions. Suggest team of British officials visit Peking and Guangdong soon to follow up. Meanwhile will report to Cabinet.

5 If asked about equity investment by the British and Hong Kong governments7 An unusual suggestion. The British government (while a shareholder or owner of many industries in UK) does not normally invest overseas. Nevertheless prepared to consider proposal if Chinese really attach important to it and in view of project's significance.