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the best prospect as lying in an Anglo/French bid. GEC and Framatome have had discussions on possible
cooperation arrangements, and we have endorsed these at government level. But as yet neither side is committed to the other. In any case agreement between GEC and Framatome would not preclude BNFL cooperation with Westinghouse on
provision of fuel should a GEC/Framatome package not
the
be successful.
BACKGROUND
5.
The CLP-KEC joint feasibility study was completed o in December 1980. It concluded that it would be possible for the two utilities jointly to construct and operate a 2 x 900MW PWR station in Guangdong, the foreign exchange cost of which would be met from electricity sales to Hong Kong. It recommended that. ''in the selection of equipment suppliers preference should be given to Chinese and UK manufacturers if their offers on conventional equipment
are technically sound and are
4
1 1
•
competitive
The study identified three potential reactor suppliers, Framatome, KWU and Westinghouse, and five turbine generator manufacturers, GEC, General Electric, Alsthom, Westinghouse' and KWU. The UK has been involved in the feasibility study through the participation of Dr Walter Marshall as technical adviser to CLP (the cost of this support being borne equally by GEC and the Department of Industry). The timescale for PRC consideration of the study is not clear but recent indications suggest that this will not be completed before the end of this year.
8. If the Chinese proceed with the project there appears a good prospect of our gaining a major share, although since we are not PWR manufacturers we could not bid for the whole project. CLP favour a substantial UK involvement and both the French and American reactor suppliers appear to perceive the UK as the natural front "unner because of:
(a) the Hong Kong connection through which the foreign
exchange cost would be met ¿
(b) GEC's established position as suppliers to CLP's
convential power programme.
But there are drawbacks. GEC haye limited relevant
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