TNAG-1505-FCO40-2063-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 219

OCMIAN 3310

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00 ΡΕΚΙΝ

FM INDUS TO PEKIN

181827Z SEP

GRS 349

FUCKC

166/1

2 JEF 1986

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TOP COPY Q DIST ? a

617

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FM DTI

TO IMMEDIATE PEKING

TELNO INDUS 206

OF 1818272 SEPTEMBER 86

INFO ROUTINE BTC HONG KONG

FOR DAVIES FROM SEDMAN

63310 - 1

.DB.

GUANGDONG.

THERE IS A MAJOR PROBLEM IN GETTING THE GEC CONTRACT INTO LINE WITH

THE INITIALED LOAN AGREEMENT. THE LATTER WAS DRAFTED ON THE BASIS

THAT EQUITABLE SUSPENSION RIGHTS WOULD BE BUILT INTO THE GEC

CONTRACT. THE GNP JVC IN SHENZHEN HAVE NOT AGREED TO THE NECESSARY

CLAUSES AND UNLESS THIS IS RESOLVED ECGD WOULD BE IN AN UNSECURED

POSITION IN CERTAIN CIRCUMSTANCES AND WE CANNOT AGREE TO THE LOAN

AGREEMENT BEING SIGNED UNLESS THIS IS SETTLED. BANK OF CHINA

CONSIDER THE LOAN AGREEMENT TO BE IN ITS FINAL FORM AND WE HAVE

BEEN TOLD THAT ONCE IT HAS REACHED THE STATE COUNIL IT CANNOT BE

ALTERED.

2. ABRAHAMS OF GEC IS STILL HA9DLING THIS MATTER IN SHENZHEN BUT IN

THE EVENT THAT HE OR WE ADVISE YOU THAT HE HAS BEEN UNSUCCESSFUL,

WE SHOULD BE GRATEFUL IF YOU WOULD DRAW THE POSITION TO THE

ATTENTION OF THOSE IN PRC GOVERNMENT WHO CAN RESOLVE THE MATTER. IF

GNP JVC POSITION IS UP-HELD THE LOAN WILL NEED TO BE RE-NEGOTIATED.

THIS WILL TAKE TIME AND 23 SEPTEMBER SIGNING DATE CANNOT BE MET. THE

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