TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 9

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Discussions at Executive Committee

This meeting was brief. KEC have failed to secure Bank of China guaran-

tees and this led to a long and inconclusive discussion. There was also a diffi- cult discussion about project management. In effect CLP are asking for 50% con- trol by putting up 0.4% of the money, compared to 6% of the money from China.

KEC did not seem enthusiastic but they did not reject the scheme out of hand.

Discussions at the Banquet

At the evening banquet, two Deputy Governors turned up, the senior being

Wang Chuan-kuo, the Deputy Governor for Internal Economic Matters, and the other

being Zen Din Zhi, Deputy Governor for External Economics.

Dr Marshall was able to ask a number of questions and Wang replied each

time in the form of a rehearsed speech. In response to a question from

Dr Marshall about whether the Chinese wished to proceed quickly with the French

or wait until the new US Administration had decided its policy, Wang said that

now the report had been finished the Provincial Government must study it hard.

Once they had made a judgement they would report and send this to Peking and

then the next steps would be considered. Pressing the point, Dr Marshall said

that that procedure would take some months and it might be possible in that time to discover Reagan's position. Wang replied yes, that would be interesting.

During the dinner there was a long discussion between Wang and

Sir Sidney Gordon about Bank of China guarantees. Wang was adamant that the joint venture laws should cover this aspect but Gordon referred to 1997 and at

this point Wang said that some way should be found to deal with guarantees between the British and Chinese Governments.

Dr Marshall referred to security of fuel supply and suggested BNFL should

be chosen for this. Wang responded that he attached considerable importance to this matter and that he anticipated that the Executive Committee, in thinking about fuel, would have to consider both the price and security of supply.

Dr Marshall also questioned the manner in which the Governments would be

involved and Wang gave another speech in which he said that he saw the main activity would be via a close collaboration between CLP and KEC, the Governments'

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