TNAG-2679-FCO40-3876-British-Trade-Commission--Hong-Kong--and-China-Trade-Unit-re-1993 — Page 130

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YOUR MEETING WITH SIR WILLIAM IS MOST TIMELY.

3 THE RELATIONSHIP BETWEEN MINISTER FOR TRADE AND SIR WILLIAM HAS DEVELOPED WELL, BUT SIR WILLIAM DOES HAVE A TENDENCY TO KEEP BUILDING ON HIS PERCEPTIONS OF THE JOB. WE HAVE ALL BEEN TRYING TO CONTAIN HIM.

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BACKGROUND. THE MINISTER FOR TRADE HAD MET SIR WILLIAM ON HIS LAST VISIT TO HONG KONG AT THE END OF APRIL THIS YEAR. DISCUSSION APPEARED TO INDICATE A SUITABLE WAY THAT SIR WILLIAM COULD HELP THE BRITISH POWER INDUSTRY TO GAIN ORDERS IN CHINA. SOME CORRESPONDENCE FOLLOWED. MFT AND SIR WILLIAM MET AGAIN ON THU 24 JUNE. SIR WILLIAM HAD IDENTIFIED TWO MEGA PROJECTS, BOTH OF WHICH BUILT ON HIS CONTACTS AND OFFERED GREAT POTENTIAL FOR BRITISH EQUIPMENT SUPPLIERS AND POTENTIAL INVESTORS.

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THE FIRST MEGA PROJECT WAS FOR A FURTHER 20,000MW OF NUCLEAR POWER IN SOUTH CHINA. SIR WILLIAM TOLD THE MINISTER THAT IT SHOULD BE POSSIBLE TO BUILD ON THE SUCCESS OF DAYA BAY AND USE A GEC ALSTHOM/FRAMATOME SUPPLY. THE CHINESE WOULD EXPECT SOME TECHNOLOGY TRANSFER AND POSSIBLE CO-PRODUCTION. (GEC ALSTHOM WERE PREPARED TO TOLERATE A JV ON THIS LORD WEINSTOCK HAD TOLD SIR WILLIAM). IT WOULD BE HELPFUL TO SEE SOME OVERT MINISTERIAL SUPPORT FOR THIS VENTURE. THE MINISTER REPLIED THAT THIS NUCLEAR PROJECT WAS UP TO GEC ALSTHOM TO DEVELOP. HMG WOULD ASSIST IF REQUIRED. A MINISTERIAL VISIT MAY PROVE POSSIBLE TOWARDS THE END OF THE YEAR. THE MINISTER WOULD RAISE THE MATTER WITH LORDS WEINSTOCK AND PRIOR.

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THE SECOND PROJECT WAS FOR A SERIES OF MINE MOUTH COAL FIRED POWER STATIONS IN SHANXI PROVINCE (660MW UNIT SIMILAR TO CASTLE PEAK B). SIR WILLIAM WAS WELL CONNECTED TO PERSONS OF INFLUENCE IN THE PROVINCE (MAINLY CHEN GANG, CHAIRMAN OF GUANGDONG GENERAL POWER COMPANY), AND SUGGESTED A HIGH LEVEL VISIT TO THE REGION (SIR WILLIAM STONES, SIR GORDON MANZIE, SIR

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