TNAG-1025-FCO40-1275-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1981 — Page 128

BRIEF NO 8(b)

ESSENTIAL FACTS

OBJECTIVES

(a) To reiterate HMG's strong interest in project;

(b) To indicate British willingness to work with French

(or Americans if that is Chinese preference);

(c) To obtain an authoritative indication of Chinese

intentions with regard to project and choice of suppliers;

(d)

To obtain Chinese recognition of importance of

substantial British participation, if possible in

a form which can be quoted to French or, better,

used publicly;

(e) To confirm Hong Kong's interest in project, providing

supply is economic.

BACKGROUND

1.

Proposals for construction of nuclear power station in Guangdong province go back several years. In early 1979 Guangdong Electricity Co (KEC) proposed to finance purchase of hardwear from sale of 50% of electricity produced to China Light and Power (CLP) in liong Kong. Joint Executive Committee

of KEC and CLP established early 1980. Feasibility study completed and delivered to Chinese (and Hong Kong Government) in December 1980. UK involved in study through participation of Dr Walter Marshall (UKAEA) as technical adviser to CLP,

2. Feasibility study recommended 2 x 900 MW PWR station, foreign exchange costs to bo met through electricity sales to Hong Kong. Preference expressed for Chinese and British manufactures for conventional equipment. Three potential reactor suppliers identified: Framatome (France), KWU (FRG), Westinghouse (US). French appear to have favoured position following Giscard's visit to Peking in October 1980 when he was given oral undertaking that France would be preferred supplier of China's first nuclear power station.

CONFIDENTIAL

/3.