TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 42

13

5

Length of Credit

6

Locals

7

Capitalisation

8

Subsidy Element

CONFIDENTIAL

that our opening bid should be 12 years but should extend to 15 years if severely pressed in negotiation so long as the subsidy level does not exceed 50% at old Consensus interest rates or 44% at the new rate.

that locals cover should not be offered.

that this should be offered and extend to the

precommissioning stage so long as the subsidy level does not exceed 50% at the old Consensus rate of 4%

at the new rate.

that this should extend at the limits of negotiation

to 50% at the old Consensus interest rate and 41%

at the new rate.

that Option 1 be given serious consideration as a basis

for the opening of negotiations.

9

Options 2, 3 and 5

that these be discarded as being either too weak (2

and 3) or too expensive (5).

10

Option 4

KBN

that this option be given serious consideration as

a basis for the opening of negotiations.

CONFIDENTIAL