TNAG-1501-FCO40-2059-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 214

GRS 550

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE PEKING

TELNO 168

OF 251015Z JULY 86

Confidential

Aiku 166/

ROJEVERN IFS

J

28 JUL 1986

DERK OFFIC NATE HONG KONG

S

355

TOP COPY IST?

INFO IMMEDIATE FCO, PARIS,

CHINA: NUCLEAR SAFETY

WE ARE CONCERNED ABOUT RECENT CONFLICTING INFORMATION REGARDING

THE TAMING OF THE SIGNING OF THE MAIN CONTRACTS FOR THE NUCLEAR

AND CONVENTIONAL ISLANDS AT DAYA BAY AND THE INTERCONNECTION

AGREEMENT.

2. HITHERTO OUR UNDERSTANDING WHICH IS BASED ON ADVICE GIVEN IN YOUR TELNO 1830 IS THAT ALTHOUGH THE CHINESE ARE KEEN THAT SIGNATURES

SHOULD TAKE PLACE IN SEPTEMBER THIS IS LIKELY TO SLIP INTO

OCTOBER. THUS IN HIS SPEECH WINDING UP THE ADJOURNMENT DEBATE ON 16

JULY THE FINANCIAL SECRETARY SAND (PARAGRAPH 22) * AM GIVEN TO

UNDERSTAND THAT ALL THE ARRANGEMENTS IN RELATION TO THIS PROJECT

ARE UNLIKELY TO BE IN PLACE BEFORE OCTOBER THIS YEAR. THAT HIS TO SAY

AFTER MY UNOFFICIAL COLLEAGUES VISITS AND REPORTS. THAT IS STILL

SOME MONTHS AWAY AND HAVE NO DOUBT THAT MY UNOFFICIAL COLLEAGUES

CAN COMPLETE THEIR VISITS AND CONSIDERATION OF THEIR FINDINGS WELL

EBFORE THE RELEVANT DATE. THESE CIRCUMSTANCES THERE SEEMS NO NEED TO SUGGEST THAT THE SIGNING OF CONTRACTS BE DELAYED.'' YOU WILL NOTE THAT THE FINANCIAL SECRETARY SPOKE ABOUT (NEXT WORD UNDERLINED) ARRANGEMENTS NOT BEING IN PLACE BEFORE OCTOBER RATHER THAN SAYING

THAT SIGNATURE WOULD NOT TAKE PLACE BEFORE OCTOBER.

3. YESTERDAY WE WERE INFORMED BY LORD KADOORE AND STONES OF CLP

THAT AT A MEETING HELD WITH WANG QUANG GUO, CHAIRMAN GNPJVC H3N

SHENZHEN ON 23 JULY THE CHINESE SIDE SAND THAT CONTRACTS WOULD

BE SIGNED IN SEPTEMBER AND THAT THE BRITISH AND FRENCH GOVERNMENTS

WERE INFORMED OF THIS DURING RECENT VISITS OF SENIOR CHINESE

GOVERNMENT OFFICIALS TO EUROPE. THIS DOES NOT ENTIRELY ACCORD

WITH THE ADVICE GIVEN BY XU JHATUN TO MARIA TAM AND ALLAN LEE ON 23

JULY (PARAGRAPH 3 OF OUR TELNO 2405).

4. THE ISSUE OF TIMING WAS RAISED BY MISS TAM THIS MORNING IN THE

COURSE OF A GENERAL DISCUSSION WITH YAXLEY ON LIKELY DEVELOPMENTS

ON THE DAYA BAY FRONT OVER THE NEXT FEW WEEKS. SHE ASKED FOR

CONFIRMATION THAT IT WAS OUR UNDERSTANDING THAT THERE WOULD BE NO

SIGNING OF CONTRACTS UNTIL UNOFFICIALS HAD COMPLETED THEIR VISHI:TS

AND REPORTED. YAXLEY EXPLAINED THAT IN ACCORDANCE WITH CHINESE

PRACTICE A SIGNED CONTRACT HAD NO EFFECT UNTIL IT WAS RATIFIED

BY A HIGHER AUTHORITY AND THAT IT WAS THIS RATIFICATION RATHER

THAN THE ACUTAL DATE OF SIGNATURE TO WHICH THE FINANCIAL SECRETARY

HAD BEEN REFERRING IN HIS SPEECH. MISS TAM EXPRESSED SURPRISE AT

Confidential

THIS