TNAG-1058-FCO40-1308-Guangdong-nuclear-power-station-project-1981 — Page 53

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was acceptable to the client, then it would clearly be helpful for relations between Framatome and Alsthom if the latter could be given something. As regards the question of exclusivity, the customer called for separate tenders for the nuclear and

But conventional islands the French would certainly respond. if they sought tenders for the entire project, or indicated willingness to consider such tenders, a joint GEC/Framatome proposal might be the answer. The French were thinking in terms of something half way between a negotiated contract and open international tendering.

16. Mr Manzie sought further clarification. If GEC and Framatome put in a joint proposal in a situation in which the Chinese had not clearly indicated readiness to contemplate a negotiated contract, would this be an exclusive agreement, or would the two firms be free to put in other bids as well ?. M Esper said he could not give an immediate answer. But an exclusive arrangement could be envisaged if the client did not make it impossible, through the wording of the tenders or otherwise.

17. Mr Manzie stressed that the UK was interested in a balanced package in which the British and French shares would be roughly equal by value, not just a nuclear/conventional split. Mr Manley added that the question was whether a package could be devised which combined the strengths of both sides. Dual sourcing of fuel (which would, as Mr Manzie had said, give greater confidence in the security of supply) would be one possibility. This had not been raised in the GEC/Framatome discussions though it had been mentioned at Pecqueur's talks in London. What were M Esper's views ? M Esper said it was normal practice for the client to seek a guarantee of fuel supplies from the reactor supplier. The French would be responsible for the fuel and M Esper did not en- visage sharing that responsibility with anyone else. Mr Manley said this clearly applied to the first fuel charge but not necessarily to reloads. M Esper replied that the normal guar- antee extended beyond the first charge. He did not see how the client could expect anyone other than the French to supply the fuel for the first contract, but he did not exclude the possibility of a different arrangement for subsequent contracts. Mr Benjamin reiterated that if the client were CLP and KEC, CLP would be bound to take account of the possibility, however remote, that a deterioration in Franco/Chinese relations would lead to an interruption of fuel supply from France. They might well prefer dual sourcing for that reason. M Esper said that one would have to wait to see how the Chinese phrased their request. He himself saw no reason why they should ask someone to provide fuel who was not at present capable of producing what was required. M Ouvrieu said it was very difficult to separate responsibility for the nuclear reactor from responsibility for fuel. Mr Manley said it was right to take account of the possibility that the client might in this case see merit in dual sourcing. The UK would of course be developing a capability to supply fuel for PWRS.

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