TNAG-1499-FCO40-2057-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 118

NICK 166/1

RECEIVED IN RI

CONFIDENTIAJUL 1986

PA

REGISTRY

umon Teken?

DESK OFFICER

INDEX

OCMIAN 8650

CONFIDENTIAL

DD 09020OZ HOKON

FM FCOLN TO HOKON

081615Z JUL

GRS 205

CONFIDENTIAL

FM FCO

TO DESKBY 090200Z HONG KONG

TELNO 1380

OF 081615Z JULY 86

INFO IMMEDIATE PEKING

240

237

48650 - 1

21937

DAYA BAY NUCLEAR PLANT

YOUR TELNO 2191:

1.

DTI BELIEVE THAT SOME SLIPPAGE IS LIKELY IN THE TIMETABLE FOR SIGNATURE OF THE DAYA BAY CONTRACTS. THEIR LATEST INFORMATION. FROM FRENCH SOURCES IS THAT THE CHINESE ARE KEEN THAT SIGNATURE SHOULD TAKE PLACE IN SEPTEMBER, WITH AUTHORISATIONS TO PROCEED FOLLOWING LATER IF NECESSARY. IN DTI'S OWN VIEW, HOWEVER, THERE

IS A STRONG POSSIBILITY THAT SIGNATURE OF THE MAIN CONTRACTS THEMSELVES MAY SLIP INTO OCTOBER: SEPARATE, COMPLEX NEGOTIATIONS WILL HAVE TO TAKE PLACE WITH EACH OF THE MAIN SUPPLIERS, AND THE ASSOCIATED DETAILED FINANCIAL ARRANGEMENTS HAVE STILL TO BE NEGOTIATED AS WELL.

2.

IF YOU JUDGE THAT THIS WOULD BE USEFUL, YOU MAY WISH TO TELL LYDIA DUNN IN CONFIDENCE THAT THIS IS OUR ESTIMATE, AND TO SUGGEST TO HER THAT AGAINST THAT BACKGROUND, IT WOULD RISK RAISING THE TEMPERATURE NEEDLESSLY FOR UMELCO MEMBERS TO ASK NOW THAT SIGNATURE OF THE CONTRACTS BE DELAYED.

3.

DEN WILL BE REPLYING SEPARATELY TO YOUR TELEGRAM ABOUT SIZEWELL. WE UNDERSTAND THAT IT IS UNLIKELY THAT A DECISION WILL BE TAKEN BEFORE OCTOBER. HOWE

GUANGDONG

[COPIES SENT TO NO 10 DOWNING STREET]

ADDITIONAL DISTRIBUTION

GUANGDONG NUCLEAR

LIMITED

HKD

FED

NED

TRED

PUSD(MR CROWLEY) WED

PS

PS/MR RENTON PS/PUS

SIR W HARDING

MR DAUNT

MR WILSON MR SLATER

CONFIDENTIAL

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