TNAG-1504-FCO40-2062-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 121

НКК

16611

OCMIAN 0706

CONFIDENTIAL

00 HKBTC

FM INDUS TO HKBTC

0516152 SEP

GRS 269

CONFIDENTIAL

FM DTI

TO IMMEDIATE BTC HONG KONG

TELNO INDUS 212

OF 051615Z SEPTEMBER 86

AND TO IMMEDIATE PEKING

INFO ROUTINE PARIS

SEP 1966

I'

TRY

shkun Takam

CONFIDENTIAL4

GUANGDONG NUCLEAR : OUTSTANDING NEGOTIATIONS

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TOP COPY Q DIST_?

60706 1

www

1. ECGD AND MIDLAND BANK ARE RESUMING NEGOTIATIONS IN SHENZHEN NEXT

WEEK IN AN ATTEMPT TO REACH AGREEMENT ON THE LOAN AGREEMENT. PENTECOST (ECGD) WITH MIDLAND WILL ARRIVE SHENZHEN ON 7 SEPTEMBER, AND SEAMAN AND CHAPPELL (ECGD LAWYER) ON 10 SEPTEMBER.

2. THE JVC IS INSISTING THAT THE LOAN AGREEMENT SHOULD BE INITIALLED, INDICATING SUBSTANTIVE AGREEMENT, WITHIN DAYS. BUT, AS ADVISED IN FCO TELNO 875 TO PEKING, WE STILL SEE SIGNIFICANT PROBLEMS. IN ADDITION ECGD HAVE RECEIVED A COPY OF A TELEX FROM JVC TO BOC URGIN BOC TO REQUEST THE RIGHT TO REDUCE THE INTEREST RATE SHOULD THE OECD INTEREST RATE FALL NEXT JANUARY. THIS IS QUITE

UNACCEPTABLE TO US AND THE FRENCH AND IF PURSUED SERIOUSLY WILL

LEAD TO FURTHER DELAY. IT MAY YET BE NECESSARY FOR PEKING TO TAKE

UP SOME OF THESE ISSUES AT POLITICAL LEVEL.

3. COMMUNICATION BETWEEN THE TEAM IN SHENZHEN AND LONDON WILL NORMALLY BE VIA GEC FAX. HOWEVER GRATEFUL IF BTC COULD STAND BY TO

ASSIST IN CASE WE NEED A MORE SECURE ROUTE.

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