TNAG-1497-FCO40-2055-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 299

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INFO PRIORITY PEKING, PARIS

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RECEIVED BY REGISTRY 26 FER 1986

DESK OFFICER

INDEX

PA

RECRTAY Action Taken

хе

FROM ALTY

GUANGDONG NUCLEAR PROJECT

1

FURTHER TO TELECON ALTY/SEATON, I AM SETTING OUT

BACKGROUND TO RECENT CHINESE REQUEST FOR ECGD/DTI PRESENCE AT

NEGOTIATIONS IN SHENZHEN.

2

JVC AND BOC HAVE BEEN DISCUSSING A NUMBER OF DETAILED

FINANCIAL ISSUES WITH GEC/MIDLAND OVER THE PAST WEEK. THE

CHINESE SIDE HAS COMPLAINED THAT IN A NUMBER OF AREAS THE UK

PROCEDURES ARE TOO COMPLEX AND NOT AS FAVOURABLE AS THE FRENCH.

IN ADDITION THERE HAS BEEN A DISPUTE OVER THE AMOUNT OF ECGD

PREMIUM PAYABLE ON VARIATIONS TO THE MAIN CONTRACT. THE CHINESE

HAVE SAID THESE ISSUES MUST BE CLEARED UP BEFORE A LETTER OF

INTENT CAN BE SIGNED.

3

GEC/MIDLAND HAVE MADE CLEAR TO THE CHINESE THAT THEY DO

NOT HAVE AUTHORITY TO ALTER EXISTING ECGD PROCEDURES: HENCE THE

INVITATION LAST FRIDAY TO ECGD/DTI TO ATTEND FINANCIAL

DISCUSSIONS THIS WEEK IN SHENZHEN.

1

CONFIDENTIAL

14.