TNAG-1497-FCO40-2055-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 332

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THE FRENCH POSITION. IF THIS WERE NOT FORTHCOMING THEY REALLY FELT THAT IN VIEW OF THE SUBSTANTIAL EFFORTS THE UK SIDE HAD MADE IN PREMIUM AND OTHER AREAS DURING THE PRESENT NEGOTIATIONS, THE CHINESE SIDE COULD NOW CLOSE THE SMALL GAP REMAINING.

5. GRATEFUL IF WE COULD ALSO BE AUTHORIZED TO SAY THAT WE HAD CON-

SULTED MINISTERS FURTHER ON THE QUESTION BEARING THE COST OF

INTEREST SHOULD THE LOAN BE EDFERRED, AND THEY HAD CONFIRMED THE

UK POSITION THAT WE COULD SHOW NO FURTHER LATITUDE ON THIS POINT.

6. GRATEFUL IF THIS LINE COULD CLEARED ON SATURDAY IF POSSIBLE TO PERMIT A RESPONSE DESKBY 0500012.

7. SHOULD THE CHINESE BE UNWILLING TO MOVE, WE FACE THE PROSPECT

EITHER OF STAYING IN PEKING TO SIT MATTERS OUT OR DEPARTING ON TUESDAY WITHOUT AN AGREEMENT. TACTICALLY WE WOULD WISH TO SAY THAT IF NO AGREEMENT HAD BEEN REACHED BY TUESDAY, WE WOULD NEED TO RETURN TO REPORT THE POSITION TO MINISTERS, ALTHOUGH THIS WOULD OF COURSE CAUSE FURTHER DEALY IF WE ACTUALLY PUT IT INTO PRACTICE. GEC'S MOU

HAS A CLAUSE RENDERING IT NULL AND VOID SHOULD THE UK AUTHORITIES

FAIL TO AGREE WITH BOC. GRATEFUL FOR ANY COMMENTS ON THE

TACTICS.

9. VICE PREMIER LI PENG IS CURRENTLY AWAY WE UNDERSTAND IN SHANGHAI.

9. YOUR INDUS 4 AND 5: COMMENTS WILL FOLLOW TOMORROW OR MONDAY.

EVANS

GUANGDONG

LIMITED

[COPIES SENT TO NO 10 DOWNING STREET]

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HKD

PUSD(MR CROWLEY) WED

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PS/MR RENTON PS/PUS

SIR W HARDING

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ADDITIONAL DISTRIBUTION

GUANGDONG NUCLEAR

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