J
CONFIDENTIAL
SECRETARY OF STATE'S VISIT TO CHINA:
1-5 APRIL 1981
BRIEF NO 8(b): GUANGDONG NUCLEAR PROJECT
POINTS TO MAKE
1. Reaffirm strong British interest.
2.
Seek Chinese views on project. Likely to be affected by current cutbacks in capital construction? Understand feasibility report now approved by Guangdong and submitted to State Council. Timing of decisions eg on reactor supplier?
3.
Project important for co-operation between China and Hong Kong. Revenue from Hong Kong necessary to Guangdong to finance foreign exchange costs. Hong Kong can readily invest in new generating capacity but nuclear supply from PRC would be welcome to help meet growing demand, provided it is on economic
terms.
4. Project should be seen in terms of Sino-British co- operation. HMG, the Hong Kong government and CLP all regard major British participation in project as a vital element in its
success. Trust Chinese do too.
5. HMG ready to approve GEC/Framatome joint proposal if Chinese wish to adopt this approach.
6.
Confident that UK can offer competitive credit terms.
7. GEC have outstanding international record as turbine.
manufacturers. Have been CLP's main turbine supplier
(reference to announcement on Castle Peak B). Understand recent presentation in Guangdong effectively demonstrated GEC's
technical competence.
8.
Recognise that reactor supplier has strong interest in fuel supply. But continuity of supply vital. Because of Hong Kong connection greatest confidence would result if British
firms (BNFL and URENCO) involved in supply arrangements.
9.
(If raised)
(a) If Chinese wished, we could cooperate with Americans;
(b) non-proliferation: a matter primarily for governments of nuclear reactor and fuel suppliers. We would in any case wish to participate in discussions but would not expect more restrictive conditions than likely to be
required by other governments;
(c)
accident liability:
Need for later discussions.
raises important questions.
No comments yet.
Private notes are available after approval.