ESSENTIAL FACTS
CONFIDENTIAL
1. The Secretary of State is familiar with the background (though
a summary is in paragraphs 6 to 10 below).
The problems involved and
the potential benefits of the project are set out in Sir K Joseph's
paper, attached.
Objectives
2. The major objective now is to obtain an authoritative Chinese
statement, at the highest possible level, that Peking supports the
Guangdong authorities.
3.
A secondary objective is to find out if possible what contribution
the Chinese Government expect from the UK and Hong Kong; in particular
whether they are really seeking equity participation in the project
by HMG and the Hong Kong Government.
Problems
4. The difficulty so far has been that discussions have been conducted
principally by China Light and Power (CLP) and the Guangdong
Electricity Company (KEC); supported by the technical assistance and
expertise of Dr Walter Marshall, Deputy Chairman (UKAEA) acting in a
personal capacity. A further line of communication, principally to
discuss commercial issues, has been established between officials of
the Guangdong Provincial Government and employees (principally
Mr Peter Potter) of the Nuclear Power Company (NPC). Neither of these
channels has been fully satisfactory and information has been
ambiguous. A visit to UK by a Guangdong economic delegation starting
on 19 September could help to clarify the issues. If so, further
briefing will be telegraphed to Hong Kong. In any case, tactics and
presentation will need to be discussed with the Governor and with
Sir P Cradock in Peking.
CONFIDENTIAL
/Considerations
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