RESTRICTED
FM PEKING
RESTRICTED
HKC166/1
TO DESKBY 12090OZ DEPARTMENT OF INDUSTRY
TELNO INDUS 45
OF 120742Z MAY 1989
а
AND TO IMMEDIATE BTC HONG KONG, OD LONDON
66
063636
MDHIAN 4421
TOP COPY Q DIST ?
FOR DAY, EM4.
YOUR TELNOS INDUS 62 AND 64 TO B T C HONG KONG: DAYA BAY.
1. WE ARE INCREASINGLY CONCERNED BY THE SEEMINGLY INTRACTABLE PROBLEMS AT DAYA BAY BUT WE ARE ALSO CONCERNED ABOUT THE POSSIBLE EFFECTS ON YUEYANG, ABOUT WHICH WE HAVE HAD RELATIVELY LITTLE NEWS. THIS IS AFTER ALL THE FLAGSHIP OF OUR AID PROGRAMME AND A PROJECT
IN WHICH LORD YOUNG HAS TAKEN A CLOSE PERSONAL INTEREST. WE STAND TO LOSE A GREAT DEAL OF PRESTIGE IF IT GOES SERIOUSLY ASTRAY. WE WOULD WELCOME MORE INFORMATION ON HOW THIS PROJECT IS FARING.
3=
GIVEN THE HIGH PROFILE OF THESE TWO PROJECTS AND THEIR IMPORTANCE TO US NOT ONLY AT INDUSTRIAL BUT ALSO AT GOVERNMENTAL LEVELS, YOU MAY WISH TO CONSIDER WHETHER WE OUGHT NOT TO COME CLEAN WITH THE CHINESE SOONER RATHER THAN LATER. TURS DO NOT COMPLETELY ANSWER THE QUESTION OF WHETHER IT IS IN FACT POSSIBLE TO PUT RIGHT THE PROBLEMS WITH THE STEELWORK: AND IF SO, ON WHAT TIMESCALE. AS WE SEE IT, IT MAY BE DISINGENUOUS TO SUGGEST (AS IN PARA ONE OF SECOND TUR) THAT THE PROJECT SCHEDULES WILL NOT BE AFFECTED. ON THE EVIDENCE BEFORE US THEY HAVE ALREADY BEEN AFFECTED QUITE SIGNIFICANTLY, AND THE CHINESE WILL NOT BE SLOW TO CRITICISE IF THEY HAVE THE LEAST SUSPICION THAT WE ARE TRYING TO
DUCK OUR RESPONSIBILITIES OR TO MISLEAD.
DONALD
YYYY
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