TNAG-1497-FCO40-2055-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 328

CONFIDENTIAL

(A) BOC CONTINUE TO PRESS FOR LETTER OF COMFORT TO COVER PERFORMANCE OF GEC EQUIPMENT. FOLLOWING EXTENSIVE DEBATE THEY HAVE AGREED TO CONSULT THEIR AUTHORITIES AGAIN ON THIS POINT SEMICLN

(B) THERE IS A CONTINUED DISPUTE ABOUT ELEGIBILITY OF HONG KONG SUBSHOPARIES OF BRITISH COMPANIES FOR ECGD SUPPORT WITH BOC PRESSING FOR DIRECT ACCESS TO ECGD FROM HONG KONG.

น.

THE TWO SIDES ARE MEETING AGAIN AT 10.30 LOCAL TIME TO DISCUSS FURTHER, BUT PROSPECTS FOR SHGNATURE TODAY ARE LESS GOOD THAN THEY HAD SEEMED EARLIER. THE TIME PROVISIONALLY FIXED US 1730 HOURS LOCAL.

5. WE SHALL REPORT FURTHER LATER TODAY. PLEASE COULD FRENCH CONTRACT PREMIUM OF 0.93% BE CHECKED AS SOON AS POSSIBLE WITH FRENCH AUTHORITIES. WE WERE SHOWN DOCUMENT APPARENTLY SIGNED BY FRENCH, BUT ANY ERROR COULD BE IMPORTANT IF NO AGREEMENT IS REACHED TODAY BECAUSE OF CHINESE INTRANSHIGENCE.

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CONTIDENTIAL