CONFIDENTIAL
GUANGDONG NUCLEAR PROJECT
STRATEGY GROUP MEETING 12 OCTOBER
Background Mate
Item 3 Next Steps
(a) Submission to Ministers
Officials discussed the tactics of the approach to Ministers the possibility
of outright rejection of an initial recommendation to offer our best terms versus the uncertainties, delays and lack of credibility inherent in bidding
up as negotiations develop.
The timing of any submission is perhaps mportant in that it will affect the timing of the eventual offer to GFC preferably before any alteration of consensus
rates.
On present information however any offer would not only he conditional on acceptance within a probable six-month period but would also be subject to
change depending on how the partnership question works out. There seems to be general agreement nevertheless that it will be advantageous to approach Ministers (even if an offer to GEC is not formulated in the short term) on the
general limits of any ultimate credit package. There was also some agreement
on what we are not prepared to offer for Guangyong (aid, any deviation downwards
from consensus interest rate despite the technical freedom to do so with a nuclear package; credit-mixte arrangements).
In making a submission to Ministers we will be appraising them of the current
state of play on the Guangdong project overall in the light of:-
-
the newly won Castle Peak B contract
the change of Administration in France
progress in UK discussions (particularly on finance)
the Bechtel/Westinghouse dimension
and will be seeking general Ministerial approval to develop negotiations with
the Chinese against the background of:
-
the scale of the potential UK commitment
the need to define the upper limits of over financial offer
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