TNAG-1058-FCO40-1308-Guangdong-nuclear-power-station-project-1981 — Page 49

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GUANGDONG NUCLEAR PROJECT: RECORD OF A MEETING HELD AT THE FRENCH MINISTRY OF INDUSTRY AT 16.30 ON MONDAY 9 FEBRUARY 1981

PRESENT:

Mr Manzie

DOI

Mr Petrie HM Embassy

HM Embassy Mr Kay Mr Benjamin PEP, DOT

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1661

RECEIVED HI REGISTRY NO. 51

M Esper, Delegue a action Exterieure,

Ministry of Industry

DECK, OFFICER

INDEX

REGISTRY

M Ouvrieu. Director General faken

International Relations CEA

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M Pellen, MFA

Mr Manley

Dept. Energy

Mr Havelock DOI

£243-

M Tridon (?), Ministry of Industry

Mr McLaren FCO

1.

Invited by M Esper to speak first, Mr Manzie said that he had been interested to see reports of M Pecqueur's recent dis- cussions with Dr Marshall and of contacts between the French Consul General in Hong Kong and the Senior British Trade Commis- sioner. The British side agreed that the time had now come for exploratory discussions at government level, to complement the commercial discussions between GEC and Framatome.

2.

Mr Manzie described the background. The Chinese had approached the China Light and Power Company (CLP) in Hong Kong concerning the possibility of a nuclear power station in Guang- dong. CLP had made a major contribution to the feasibility study which had now been submitted to the Chinese and British Governments, the Hong Kong Government and the Guangdong provin- cial authorities. The British Government had provided technical advice for this study through the UKAEA and had also advised the Governor of Hong Kong. There was a continuing dialogue with the Guangdong authorities. As regards equipment, the feasibility study stated that "preference should be given to Chinese and UK manufacturers". It also noted that KWU, Framatome and Westinghouse were all capable of supplying the nuclear reactor.

3. Continuing, Mr Manzie said that there was some uncertainty about Chinese intentions ever major capital contruction projects, a number of which had recently been cancelled or postponed. But we had to work on the basis that the Guangdong nuclear pro- ject would go ahead. The shortage of energy resources in Guangdong province, the importance of the project to Hong Kong and the fact that it could be financed from the sale of electri- city to Hong Kong were all factors in its favour. The Hong Kong Government would, of course, have to approve the purchase of electricity from the project by CLP and would also have to be satisfied as regards safety and security of supply.

4. Mr Manzie said that GEC and the UK government had been con- sidering possible partners for a joint venture in connection with this project though they recognised that it was ultimately for the client (i e the Guangdong Electric Comapny (KEC) and CLP to decide. The UK and GEC had long-standing connections with Westinghouse and these would continue in the UK. On the other