TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 33

14.8

PA

D'STRIBUTION

Dol

BTC HONG KONG DESK BY 080100Z

HELIFE!

GRS 1400

RESTRICTED

DESKBY 08010OZ

FM DT

07181OZ NOV 80

TO IMMEDIATE BTC HONG KONG

TRED

HKGD

170

18 NOV 1980

DESKK

INDEX

PA

18

1128

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TELEGRAM NUMBER INDUS 315 OF 7 NOV

FROM BROWN

GUANGDONG NUCLEAR POWER STATION PROJECT

I WOULD BE GRATEFUL IF YOU COULD PASS THE FOLLOWING TO MR W F

STONES, CHINA LIGHT AND POWER.

QUOTE YOU VERY KINDLY LET US HAVE THE DRAFT COPY OF THE FEASIB-

ILITY REPORT TO BE SUBMITTED TO THE MANAGEMENT COMMITTEE. WE FOUND

THIS MOST INTERESTING.

I HAVE NO DOUBT THAT THERE HAVE ALREADY BEEN CHANGES BUT I THOUGHT

YOU MIGHT APPRECIATE MY COMMENTS FOR WHAT THEY ARE WORTH,

I MUST STRESS, THOUGH, THAT THE FOLLOWING CANNOT IN ANY WAY BE TAKEN TO REPRESENT THE VIEWS OF HKG SINCE, AS MR MANZIE HAS EXPLAINED, MINISTERS WILL NEED TO CONSIDER THE FINAL PEPORT. IT IS HEARTENING THAT IN THE RECOMMENDATIONS IT IS STATED THAT PREFERENCE WILL BE GIVEN TO CHINESE AND UK PLANT, EQUIPMENT,

RESOURCES AND FACILITES WHERE TECHNICALLY ACCEPTABLE AND ECONOMIC.

WE WOULD HOPE THIS GENERAL RECOMMENDATION IS MAINTAINED. IT IS

ON THIS BASIS THAT MINISTERS HAVE GIVEN THEIR GENERAL SUPPORT

TO THE PROJECT INCLUDING THE SPECIFIC SERVICES FROM UKAEA.

A KEY AREA FOR DEBATE ONCE THE FEASIBILITY STUDY IS SUBMITTED

WILL BE THAT OF PREFERRED CONTRACTING METHODS. WHILE IT IS UNDERSTANDABLE THAT THE FEASIBILITY STUDY SHOULD NOTE THE WIDE RANGE

OF POSSIBILITIES AND AIM TO MAINTAIN A FLEXIBLE APPROACH AT THIS STAG

UNTIL SPECIFIC OFFERS ARE AVAILABLE IT SHOULD BE RECOGNISED THAT THIS HAS DISADVANTAGES. THE PROCESS OF EVALUATION OF BIDS FROM TECHNICAL COMMERCIAL AND FINANCIAL STANDPOINTS IS A LENGTHY PROCESS INVOLVING CONSIDERABLE EFFORT ON THE PART OF THE PURCHASER. THE INVI - TATION OF BIDS ON ALTERNATIVE CONTRACTING BASES WILL SUBSTANTIALLY INCREASE THE EFFORT REQUIRED AND THE TIMESCALE TO REACH THE STAGE OF CONTRACT AWARD. THE OVERALL TIMESCALE PROJECTED FOR THE PROJECT IS RECOGNISED AS BEING TIGHT AND IT IS CONSIDERED PARTICULARLY SO IN RELATION TO A FIRST STATION IN WHAT IS LIKELY TO BE A NEW

TERRITORY FOR CONTRACTORS. THE PROPOSED INTERVAL OF 10 MONTHS