TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 174

CONFIDENTIAL

Entra

24

NOTE OF A MEETING HELD TO DISCUSS GUANGDONG NUCLEAR POWER STATION PROJECT

AT ASHDOWN HOUSE ON 5 MAY 1981

Chairman

ACTION

Present: Mr A G Manzie

Mr R McLaren

Mr R Clift

Mr M Roberts

Mr G Stevens

Mr R Ranson

Mr C Benjamin

Mr A J Havelock

Mr N R Brice

FED/FCO

HKG/FCO

JNU/FCO

Dept of Enei gy ECGD PEP/Trade

HKK 16

166

AVCHI MEGASTIT NO.

02 JUN 1981

OTEL A ACHK

INDEX

ло

PA

2261

RESIE RY

JAction Taken

The meeting was held immediately before a general meeting with Mr Stones and Mr Brooks of CLP.

2.

Mr Manzie reported that Mr Lippitt had spoken to him, following a meeting with M Aboudarham of Framatome, and Mr Lippitt had asked whether GEC could immediately sign the agreement, or whether further Government approval was required. It was agreed that the Ministerial remit permit- ted signature but that it should be ratified soon after. fuel, the common view was that the only way to obtain involvement fo. BNFL would be for CLP to exert some pressure in China.

3. Mr Manzie said that M Esper had still not agreed that Trametome should sign the Agreement, and because of the advice of HM Ambassador in Paris, he was not pressing the point.

4. It was reported that Mr Potter was again to visit China within the next 3 or 4 days, allegedly following an invitation from Lu Ying. There was some discussion as to whether or not Mr Thomson from the China Trade Unit, BTC Hong Kong, should accompany Mr Potter but it was concluded that he should not do so in order to avoid giving too much prestige and importance to Mr Potter. However, it was necessary to brief Thomson and Mr Brown was to send a telex.

5.

Mr Ranson said that he was becoming increasingly concerned that the project seemed to be gaining its own momentum without any of the financial considerations having been seriously reviewed.

This case could involve a major long term commitment and although Ministers should not be approached too early, a situation should not be allowed to develop whereby a series of official and ministerial talks with the Chinese led to an inescapable commitment to provide support in advance of formal consideration of all the issues involved. Mr Ranson contin- ued that although information on the extent of UK supply, rates of interest and period of loan, must be treated with considerable reserve, it was necessary for GEC to put in at least a tentative inquiry to ECGD. Mr Manzie accepted the necessity of doing so, but the meeting nevertheless felt that it would be the French who would set the lead. Mr Manzie also commented that the Chancellor of the Exchequer had requested a paper on equity, which was still outstanding.

GEC

Mr Brown

GEC

Mr Brown