TNAG-1497-FCO40-2055-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 287

ZCZC

MILNAN 1981 OCMIAN 1981

CONFIDENTIAL

DD 120100Z HKBTC

FM INDUS TO HKBTC

111900Z MAR

GRS 977

CONFIDENTIAL

FM DTI

Paitan

31

CONFIDENTIAL

21988

1

TO DESKBY 120100Z BTC HONG KONG

TELNO INDUS 49

OF 111900Z MARCH 86

AND TO DESKBY 120100Z PEKING

INFO PRIORITY PARIS

FROM ALTY

Fyki(166/1

RECEIVED IN REGISTRY

13 MAR 1986

DESK OFFICER INDEX

PA

REGISTRY

Action Taken

GUANGDONG NUCLEAR PROJECT: MY THIRD IPT

BACKGROUND BRIEFING FROM SEDMAN (FOR HMG EYES ONLY)

WE THINK THE CHINESE HAVE MISUNDERSTOOD THE SIGNIFICANCE

OF THE QUALIFYING CERTIFICATE AND WE SEE NO PLACE FOR SIGHT

DRAFTS IN ANY LOAN CONNECTION. GEC SEEM PREPARED TO ALTER THE

SUPPLY CONTRACT TO ALLOW BANK OF CHINA TO COUNTERSIGN QC WITH

SIMPLE SIGNATURE. AT GEC'S REQUEST WE HAVE NOT SUGGESTED IN THE

AIDE MEMOIRE REFERENCE TO BOC SIGNING A PAYMENT ORDER. HOWEVER

WE SEE NO BASIC OBJECTION TO BANK OF CHINA INSERTING A FORM OF WORDS ON THE QC WHICH, IN THEIR EYES, TURNS IT INTO A PAYMENT ORDER PROVIDED THE ESSENTIAL AUTHORITY OF THE QC AS REQUIRED BY

UK PARTIES IS UNDIMINISHED. GEC (KNIGHT) HAVE AGREED THAT IF

PRESSED BY BOC ON THE TERMINOLOGY THEY COULD AGREE TO THIS.

THIS IS VERY USEFUL FROM OUR POINT OF VIEW AS GEC

HAVE SOUGHT SG COVER IN EVENT THAT JVC DID NOT MAKE PAYMENT

2

1

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