TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 134

CONFIDENTIAL

PAPER FOR MINISTERS ON THE GUANGDONG NUCLEAR POWER STATION PROJECT

Purpose of Paper

1 The Secretary of State for Industry informed the Frime Minister and Ministerial colleagues on 25 October 1979 and 18 February 1980 about proposals for a nuclear power station which would be constructed on a joint venture basis between China Light and Power Limited (CLF) and the Guangdong Electricity Company (KEC) with about half of the output being sold to CLF, thereby generating the foreign exchange to repay foreign loans.

2 This paper, which represents the views of DOI, FCO, DOT, Department of Energy, Treasury and ECGD:-

a)

b)

c)

Outlines recent progress;

Draws the attention of Ministers to the principal issues involved;

Seeks Ministerial endorsement of the UK's continued involvement in the project, approval of a line for the Foreign Secretary to take with the Chins during his forthcoming visit to China and approval for official discussions with the Chinese.

3 A direct understanding of the Chinese position on the project will be necessary before Ministers need to form views on particular issues. The visit of the Foreign Secretary affords an opportunity to seek this.

Background

Ministers agreed in February that:

there should be a continuing UK industrial and official involvement in the project;

technical support should be provided to CLP who were to enter a joint study with KEC on the feasibility of the project. UKAEA was subsequently asked and agreed to take on this task;

the UK would not insist on nuclear inspection safeguards but would seek general assurances on the peaceful application of nuclear technology and fuel.