TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 149

NF

CAL

DEPARTMENT OF INDUSTRY

ASHDOWN HOUSE

123 VICTORIA STREET

LONDON SWIE 6RB

TELEPHONE DIRECT LINE

01-212 6904

SWITCHBOARD 01-212 7676

15 August 1980

P Cradock Esq CMG British Embassy

Peking

Dear Cradock

GUANGDONG NUCLEAR POWER STATION PROJECT

I thought it was about time I wrote to you to let you know how we see the negotiations on this subject from here.

As you know, the lead in the negotiations has been taken so far most effectively by CLP (Lawrence Kadoorie and Bill Stones) and we believe that they, with the help of Walter Marshall, have advanced a great deal in timescale much faster than we ever contemplated. But we have to consider now possible involvement with the Chinese at official level. How we play this depends on Ministerial decisions, of a preliminary kind at least, in September, on HMG's role in the project. There are also the questions of how we brief the Foreign Secretary on this subject for his visit to Hong Kong and Peking and what kind of statement of HMG's position is given to the Chinese by CLP at the October meeting of the Executive Committee.

Having consulted Far Eastern Department, Hong Kong and General Department and JNU within the FCO, the initial view between Departments is that during Lord Carrington's visit only a general expression of interest in the Guangdong nuclear project should be made. But our feeling is that a small team should visit Peking and Guangdong at the beginning of October for official level discussions on the nuclear project. We should of course have to tie this up carefully with CLP to make sure that we did not cut across the discuss- ions they are having at power company level. We do not think we can be reliant upon CLP, however excellently they have performed to date, as an intermediary expressing HMG's views and discussing the feed-back. Sir Lawrence Kadoorie apprec- iated during discussions here with us that a greater official involvement might soon be appropriate on the project and we feel that this involvement should also not just be with the Guangdong officials but also with Peking, who must ultimately take the crucial decisions.

CONFIDENTIAL

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