TNAG-1058-FCO40-1308-Guangdong-nuclear-power-station-project-1981 — Page 119

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17.

I said that I thought it necessary for China to bear in mind the importance of not relying on a single source for enrichment and reprocessing of nuclear fuel and cited the problems experienced by Japan and India when due to political reasons the USA delayed shipments of fuel already contracted for.

Mr. Lu said this was being taken into consideration.

The USA attitude to proliferation could change. However, I said this was unlikely during an election year.

18.

Mr. Lu asked about the turbines and other conventional

plant, to which I replied that I thought a satisfactory

package could be negotiated with the British just as

we had done with the plant at Tap Shek Kok. If this

could not be arranged then we would have to see what

others could offer.

Mr. Lu said Dr. Marshall had referred to the following

five pre-conditions required by the PRC which governed the supply of equipment:

1. no nuclear inspection by international

agencies;

2.

safety;

3. technically advanced;

4.

secure long-term fuel supply;

5.

economics;

and asked if we agreed.

19.

I replied in the affirmative. We would have to satisfy the Hong Kong Government who in turn would have to

satisfy the people of Hong Kong as to the safety of the

reactor.