TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 72

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but that the US option should be kept open. Lord Kadoorie is

known to favour Framatome.

4.

Lord Kadoorie sees it as an important means of increasing

inter-dependence between Hong Kong and China. He has been critical

of alleged foot-dragging by HMG, but we think that he is not

satisfied that everything that needs to be done is being done

and that further progress depends on Chinese decisions.

Lord Kadoorie and members of his company have been invited to

Peking in mid-November.

NATIONALITY BILL

5.

The House of Lords voted in July for an amendment to vive

Gibraltarians, by virtue of their EC connection, the right to

become British Citizens. HMG opposed this amendment, and will

attempt to reverse it when the Bill returns to the Commons on

26 October. The amendment has revived interest in Hong Kong in

obtaining a compensatory concession, a change in nomenclature that

would underline the individual British connection.

5. The LPS is familiar with the background and latest

developments.

MULTI-FIBRE ARRANGEMENT

6.

BRIEF LPS MTS WITH WICADOOME HUR 12113

Multi-Fibre Arrangement (MFA) provides framework for

regulating international trade in textiles. It is due for

on 14/10

renewal at the end of 1981. Strong pressure by developed countries

for some tightening of restraints on their imports under MFA.

7.

Hong Kong is a dominant supplier of low-cost textiles.

Bilateral agreement under the MFA between EC and Hong Kong expires

at end of 1982.

8.

In 1978, EC cut back Hong Kong's quotas to below 1977 level.

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/Hong