TNAG-1497-FCO40-2055-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 276

GRS 600

CONFIDENTIAL

CONFIDENTIAL

FM PEKING

TO DESKBY 121OOOZ DEPARTMENT OF INDUSTRY

TELNO INDUS 51

OF 120838Z MARCH 86

INFO DESKBY 13010OZ BTC HONG KONG

INFO PRIORITY PARIS

FOR ALTY FROM DAVIES

4KK 166!!

RECEIVED IN REGISTRY ·

13 MAR 1986

DESK OFFICEA

WDEX

PA

REGISTRY

Action Taken

Pärtom

YOUR TELS NO INDUS 49 TO 52 TO BTC: GUANGDONG NUCLEAR PROJECT

L.

FRENCH EMBASSY REMAIN UNSIGHTED. WE WILL OF COURSE CONTINUE

TO LIAISE WITH THEM, AND WE AGREE THAT ANY DEMARCHE FROM US SHOULD BE PITCHED NOW LOWER THAN THEIRS. THERE ARE HOWEVER BOTH A)

PRESENTATIONAL AND B) PRACTICAL DIFFICULTIES IN THE COURSE

CURRENTLY ENVISAGED.

THE

A) IF AMBASSADORS ARE TO DELIVER MESSAGES, WHETHER JOINTLY OR SEPARATELY, SUCH MESSAGE WILL NEED A "POLITICAL'' DIMENSION.

AIDE MEMOIRE AS DRAFTED (YOUR INDUS 52) COVERS TECHNICAL MATTERS

WHICH IT WOULD WRONG TO EXPECT A MINISTER LET ALON A VICE-PREMIER TO BE SIZED OF. SUGGESTED OUTLINE LINE TO TAKE IN PARA 2 BELOW. B) IT COULD TAKE SEVERAL DAYS BEFORE WE WERE ABLE TO ARRANGE A MEETING EVEN WITH A MINISTER. EVEN IF WE ASKED FOR LI PENG WE

MIGHT WELL BE RECEIVED AT A LOWER LEVEL. YOU SHOULD KNOW TOO THAT

THE AMBASSADOR WILL BE AWAY IN HONG KONG ON 17, 18 AND 19 MARCH.

2. SUGGESTED DRAFT POINTS TO MAK:

(1) GREAT PROGRESS MADE ON THIS PROJECT AS A RESULT OF SUB-

STANTIAL EFFORTS BY ALL PARTIES CONCERNED OVER SEVERAL YEARS.

SATISFACTORY POSITION REACHED ON PRICE AND FINANCING TERMS IN THE

TWO MOUS SIGNED IN JANUARY. MR LEON BRITTAN'S MESSAGE TO VICE- PREMIER LI PENG DELIVERED ON 17 JANUARY TO MFA EMPHASISED HMG'S

CONTINUING COMMITMENT TO THE PROJECT OVER MANY YEARS.

(11)

FURTHER MEETINGS BETWEEN THE BANK OF CHINA, DTI, ECGD AND

UK BANKS TOOK PLACE IN LONDON IN JANUARY. DISCUSSIONS BETWEEN THE

VARIOUS PARTIES CONCERNED HAVE BEEN CONTINUING IN SHENZHEN SINCE

OPEN SQUARE BRACKETS DATE? CLOSE SQUARE BRACKETS FEBRUARY. ALL

CONCERNED WERE HOPING TO SIGN LOI BY 1 MARCH. COMPLEXITIES OF THE

PROJECT AND OF ITS FINANCING TERMS UNFORTUNATELY PREVENTED ACHIEVE-

MENT OF THIS TARGET DATE.

(111) ON 4 MARCH BOC/JVC PRESENTED A MEMORANDUM TO THE UK

NEGOTIATORS SEEKING FURTHER CONCESSIONS ON THE FINANCING TERMS.

THE BRITISH GOVERNMENT, ECGD AND THE BANKS HAVE NOW CAREFULLY CONSIDERED THIS MEMORANDUM. SEVERAL OF THE REQUESTS IN IT ARE

1

CONFIDENTIAL

IVERY

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