TNAG-2829-FCO40-4082-Hong-Kong-Guangdong-nuclear-power-station--Daya-Bay--China-1993 — Page 243

CONFIDENTIAL

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MDHIAN198 *

AGREEMENT IN PLACE BEFORE NUCLEAR CHAIN REACTION BEGINS, INCIDENTS BECOME THEORETICALLY POSSIBLE, IN MID JULY.

AND

COULD RETURN TO CONFIDENTIALITY WHEN REMAINING ISSUES ARE SETTLED. THAT WOULD PROVIDE A MORE COMPLETE BACKGROUND AGAINST WHICH TO PUSH FOR FINAL AGREEMENT. MIGHT BE EASIER TO OVERCOME DIFFERENCES ON SPECIFIC POINTS WHEN WE KNOW SHAPE OF OVERALL PACKAGE, AND CAN JUDGE OVERALL ACCEPTABILITY TO HONG KONG PUBLIC.

REGRET GUANGDONG SIDE UNWILLING TO AGREE ORIGINALLY PROPOSED DATES FOR NEXT ROUND (17-22 JUNE). WE NOW SUGGEST FROM 1 - 6 JULY. HOPE YOU CAN PERSUADE THEM TO ACCEPT.

NEXT STEPS

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4 FOR YOUR INFORMATION, IN PARALLEL TO PEKING'S APPROACH, WE INTEND TO ASK WONG PO YAN, CHAIRMAN OF THE DAYA BAY CONSULTATIVE COMMITTEE, TO PRESS OUR CASE WITH THE GUANGDONG AUTHORITIES. HE HAS GOOD CONTACTS WITH THEM, AND HAS BEEN HELPFUL TO US IN THE PAST.

5. BUT WE ALSO NEED TO PREPARE NOW FOR THE REAL POSSIBILITY THAT FURTHER LOBBYING WILL NOT BUDGE THE CHINESE INTO DISCUSSIONS OF ON- SITE ISSUES. WE WOULD BE PREPARED, AS A FIRST FALL BACK POSITION, TO OFFER FURTHER DISCUSSIONS OF CONFIDENTIALITY AT THE NEXT MEETING, ON THE UNDERSTANDING THAT THE MEETING WOULD ALSO COVER ON- SITE ISSUES. AND WE ARE CONSIDERING URGENTLY WHETHER THERE IS ANY FORMULA WHICH WE COULD OFFER TO CHINESE AT THE RIGHT MOMENT WHICH THEY MIGHT ACCEPT, BUT WHICH WOULD ALSO BE POLITICALLY SALEABLE IN HONG KONG. WE ARE FOR EXAMPLE EXAMINING WHETHER WE COULD ALLOW MORE CONFIDENTIALITY ON ON-SITE INCIDENTS, (WHICH WOULD HAVE NO DIRECT CONSEQUENCES FOR HONG KONG) THAN ON (FAR MORE SERIOUS) OFF- SITE

6.

INCIDENTS.

BUT WE SHOULD ALSO FACE THE POSSIBILITY THAT THE CHINESE WILL NOT SIGN UP TO ANY FORMULA WHICH WOULD BE ACCEPTABLE HERE. MY POLITICAL JUDGEMENT IS THAT, IN THOSE CIRCUMSTANCES, NO AGREEMENT WOULD BE BETTER THAN A FLAWED ONE. IT WOULD BE MUCH HARDER TO EXPLAIN TO THE PUBLIC HERE WHY WE HAD ACCEPTED A CHINESE VETO THAN WHY WE HAD, IN RESISTING ONE, FAILED TO REACH AGREEMENT.

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