TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 232

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a total PWR capability.

- 2 -

On our side, GEC would probably represent

the main commercial interests and the advantages could be consider-

able.

5. Recently, discussions between CLP and KEC have led to a proposal

that the UK and Hong Kong Governments should participate in the

financing of the project, probably by shares in a Hong Kong-based

company which, with the Chinese, would jointly own the project.

Sir Lawrence Kadoorie visited London in the week beginning 28 July

to seek Ministerial support for this idea. At the same time, he

put forward his ideas on the political significance of the project

which he belives to be directly related in Chinese minds with the

problem of the future of Hong Kong. He sees particular significance

in the proposal for inter-governmental participation in a scheme

stretching past 1997 and maintains that the idea could be as import-

ant as "ping pong diplomacy" in leading to an agreement on the

continuing status quo in Hong Kong.

6. Sir Lawrence Kadoorie saw the Prime Minister, Sir Keith Joseph

and the Lord Privy Seal. All expressed warm interest in the project

and confirmed HMG's general support. No firm financial commitments

were however made.

7. In discussion with the Prime Minister (Mr Alexander's letter of

30 July), Sir Lawrence Kadoorie expressed interest in the Secretary

of State's forthcoming visit to Hong Kong and Peking. He thought

it would be useful if Lord Carrington were to mention the project

while he was in China. He said that he would probably change his

holiday plans in order to be in Hong Kong at the time and might

possibly also go on to Peking.

8.

This has been followed up by a message from the British Trade

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