TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 107

GR 600

CONFIDENTIAL

DESKBY 3109002

CONFIDENTIAL

FM BTC HONG KONG 3105152 AUG 82

TO IMMEDIATE DOI

TELEGRAM NUMBER INDUS 121 OF 31 AUGUST

AND TO PRIORITY PEKING

GUANGDONG NUCLEAR PROJECT: VISIT OF SIR W. MARSHALL.

clone AF-31

Rokol

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• HRK 166/1

1. MARSHALL AND PLAIL HAVE NOW DEBRIEFED US ON THE VISIT TO CANTON. IN THE EVENT MARSHALL'S PARTY AND SEATON, HAVING TRAVELLED TO CANTON SEPARATELY, WERE UNABLE TO MAKE CONTACT UNTIL THE SUBSTANTIVE DISCUSSIONS WERE OVER: THIS ALMOST CERTAINLY WAS DELIBERATE AND THE CHINESE CLEARLY CONSIDERED IT

INAPPROPRIATE FOR SEATON TO TAKE PART IN THE MEETINGS.

2. THE HOST FOR MARSHALL'S VISIT WAS THE GUANGDONG SCIENCE AND TECHNOLOGY ASSOCIATION BUT IT WAS EMPHASIZED THAT THE STA WAS ACTING WITH THE FULL AUTHORITY OF THE PROVINCIAL GOVERNMENT AND

THE DISCUSSIONS WERE LED ON THE CHINESE SIDE BY LU YING. MARSHALL ALSO HAD A FORMAL SESSION WITH VICE-GOVERNOR WANG. THE STA SAID

THAT THEY HAD INVITED MARSHALL TO SEEK HIS VIEWS ON THE PROSPECTS FOR THE UK/US JOINT BID FOR THE NUCLEAR PROJECT: THEY REGARDED IT AS IMPORTANT TO HAVE A SEPARATE CHANNEL OF COMMUNICATION, INDEPENDENT OF CLP (WHOM THEY DESCRIDED AS ''INSENSITIVE" TO CHINESE WISHES). 3. IT BECAME APPARENT THAT THE MAIN CONCERN OF THE CHINESE WAS

OVER NON-PROLIFERATION SAFEGUARDS REQUIREMENTS AND IN PARTICULAR WHETHER IT WOULD BE POSSIBLE FOR A JOINT UK/US BID TO GO AHEAD WITHOUT A REQUIREMENT FOR INSPECTION. THERE HAD BEEN A DIFFERENCE OF OPINION IN CHINA ON WHETHER OR NOT THIS WOULD BE POSSIBLE. MARSHALL TOOK THE LINE THAT THIS SHOULD BE POSSIBLE BUT THAT IT WOULD BE DIFFICULT: AND THAT 'DISTRACTIONS AT THE POLITICAL LEVEL SHOULD BE AVOIDED. THE CHINESE SAID THAT SOME FORM OF DECLARATION ON THE USE OF MATERIAL OUGHT TO BE POSSIBLE. THEY ALSO MADE THE POINT THAT THEY INTENDED TO KEEP THEIR CIVIL AND MILITARY PROGRAMMES ENTIRELY SEPARATE AND EMPHASIZED THEIR RIGHT, AS A NUCLEAR WEAPONS STATE, TO ACT INDEPENDENTLY. THE CHINESE APPARENTLY CAME BACK TO THIS QUESTION REPEATEDLY AND MADE PLAY OF THE FRENCH ATTACHING NO CONDITIONS TO THEIR SUPPLY OF TECHNOLOCY. 4. THE CHINESE ALSO RAISED THE QUESTION OF EQUITY FOR THE PROJECT (REFERRING BACK TO DISCUSSIONS DURING MARSHALL'S VISIT TWO YEARS AGO) AND OF UK INSTITUTIONS, AND IN PARTICULAR THE CEGB AND AEA, PUTTING EQUITY INTO THE PROJECT. MARSHALL SAID THAT THIS WOULD NOT BE POSSIBLE FOR CEGB. LU YING ALSO RAISED THE POSSIBILITY OF MARSHALL LEADING THE UK/US TEAM TO BID FOR THE PROJECT: MARSHALL SAID THIS WOULD BE IMPOSSIBLE: HE WAS FULL-TIME ON HIS NEW JOB AT THE CEGB AND ONLY A DIRECT INSTRUCTION FROM THE PM COULD CHANGE THIS. 5. MARSHALL'S ONLY CONTACT WITH GPC INVOLVED WHAT HE DESCRIBED AS THE PUBLIC HUMILIATION OF CHEN GANG WHO SPOKE AT SOME LENGTH EMPHASIZING THAT WITH RESPECT TO THIS PROJECT HE AND GPC WERE TOTALLY SUBORDINATE TO THE PROVINCIAL GOVERNMENT AND LU YING.

CONFIDENTIAL

/CHEN GANG

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