TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 217

CONFIDENTIAL

HICK 166/1

RECEIVED IN REGISTRY NO. 51

2 1 AUG 1980

DESK OFFICER INDEX

PA

REGISTRY Agion Taken

Mr W

RA

or

17

21.8

Е

& 195

NOTE FOR

Aways

GUANGDONG: NUCLEAR POWER PROJECT

cc PS/Secretary (1)

Mr Manzie

Mr Caines

Mr Dell

Mr Dick

Mr Havelock

Mr Mathrani

Mr Manley D/Energy Mr Morrice HKG/FCO Mr Fursland FED/FCO Mr Roberts JNU/FCO Mr Whittear Tsy Mr Field ECGD

Following a warning by Schroders that NEI had got wind of the potential reality of the Guangdong project from their recent visit to Peking and Hong Kong, I had a call from Christopher Thompson enquiring whether HMG would give them full support.

I took the line that this was a case where we had inevitably given support to the first company which had pursued an initial opportunity, and in this case the company had been GEC, who had been following up leads about a potential nuclear possibility in Southern China long before this surfaced in the form of the KEC proposal to CLP of a joint operation. His first reaction was to be somewhat belligerent in remark- ing that it was surprising how often this argument was applied conveniently in GEC's favour, as was the case on the B station. (Not being aware how far we had actually communi· cated a final view on this topic, I did not take up this thread.) But I said that the two cases were by no means analagous: in the case of CLP, it was known that they had a forward programme of capacity growthto meet foreseeable demand increases. We were here talking about a case where one or other company had identified an opportunity, taken initial action to follow this up, and expended resources both of manpower and finance in converting the initial indication into a more realisable case. I stressed that in this respect our treatment of the two power generating companies was identical in the case of Rumania, we had indicated clearly to GEC that NEI were the front runner, and in the recent case of Malmo, it seemed again that NEI had found an oppor- tunity that they were pursuing in advance of the other company. He readily took the point that it would be quite improper for the Department to make known such opportunities to the competing company. I also mentioned that in the case of Guangdong, even when it had become fairly prominent public knowledge, and indeed in the course of a meeting with their representative in the presence of Mr Manzie where the topic had been referred to, they had not expressed any interest.

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