TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 183

CONFIDENTIAL

GUANGDONG NUCLEAR PROJECT CURRENT POSITION AND OUTSTANDING ACTIONS

Current Position

1. Feasibility Reports submitted to Guangdong Provincial Government, Hong Kong and

UK Governments. Provincial Government Commission headed by Lian Tianfu with

Lu Ying as Secretary submitted a report to Peking (see Figure 1). Peking Ministry

responsibilities probably as in Figure 2.

2. Lord Carrington discussed project with Chinese Prime Minister stressing the

Hong Kong connection and our desire for a major UK content, in collaboration with

the French. Mr Zhai recognised British and Hong Kong interests but said that

feasibility studies had not yet been completed and that there were technical

problems to be solved. He spoke in somewhat general terms about potential hardware

suppliers, and the possibility of intemational competition, but did not comment

on any Chinese commitment to the French on reactors.

3. Conflicting reports from China continue. Mr Yang Shangkun, ex-mayor of Canton

and now Vice-Chairman of the National Peoples Congress told a Belgian delegation

that the decision to go ahead with the power station had been taken, that the

Fremh would supply the reactors, the UK the associated equipment and the

Americans "equipment associated with the associated equipment". He added that

there would be contracts available for other countries as well, and gave the

impression throughout that all these points had been firmly decided. However,

Mr Yu Qiuli, head of the Energy Commission, simply said recently that nuclear

power was a long-term question and that China had abundant resources of coal

which should be used first. Mr Yu may be in the decline, but these conflicting

reports could suggest considerable internal discussion in China.