TNAG-1058-FCO40-1308-Guangdong-nuclear-power-station-project-1981 — Page 23

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

DSR 11C

break into this, and the French fuel manufacturers CEA have

accepted informally that it would be feasible for British

Nuclear Fuels Ltd (BNFL) to participate.

To secure this however

will be uphill work. We shall probably need to enlist Chinese

support. We can argue that, to guard against possible future

supply interruptions, diversification of fuel supply would be

important. The UK, with its close relationship with Hong Kong,

will have a greater interest than other potential suppliers

in ensuring continuity. The British also have an interest in

the provision of enrichment services by Urenco. (Although

these would be a logical complement tc provision of fuel

fabrication services' by BNFL they could also be pursued

independently. Even if we fail to make headway with the French

over fuel fabrication, Urenco's interest will still need to

be pursued vigorously.)

Anglo-Chinese official contracts on Guangdong

jo. The bulk of discussions to date have been between personnel

of CLP and KEC, but contacts have also taken place between the

Nuclear Power Company (NPC) and Chinese government officials

in Peking and Canton; and between Dr Walter Marshall and

officials in Canton. These have resulted in confusing and

conflicting information.

We therefore attach importance to

obtaining authoritative guidance on Chinese Government

intentions.

10.

Following the cancellation of Lord Carrington's planned

visit in October (when we had hoped to sound out Chinese views)

HM Ambassador discussed the nuclear project in general terms

with Premier Zhao Ziyang and Vice Premier Gu Mu. Zhao confirmed

that Guangdong had delegated authority to pursue the proposal.

The Chinese Government now favoured starting a nuclear power

/programme

89280 Dd 532113 200M 2/79 StS

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