TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 12

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WP.

CONFIDENTIAL

Foreign and Commonwealth Office London SW1A 2AH

Mrs C E D Bell

MEE Division

Department of Industry

Ashdown House

123 Victoria Street

LONDON SW1E 6RB

Telephone 01-

233 3184

Your reference

Our reference

Date

MKK

Da

79

17 December 1982

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GUANGDONG NUCLEAR PROJECT: VISIT OF THE SECRETARY OF STATE FOR INDUSTRY TO THE FAR EAST : 11-23 JANUARY 1983

NR

1. Peter Thomson passed me a copy of your letter of 15 December to him. He and I agreed that I should offer comments separately on those points which concern Hong Kong directly.

2.

You raised the possibility of including the question of whether Hong Kong's economic vulnerability to pressures from the People's Republic of China (PRC) would be increased. It is possible that this will come up, but not likely. I think the right answer would be:

3.

'No. The project would be of considerable economic benefit to the PRC, in that electricity would be sold to Hong Kong. The result would be increased reasons for cooperation between China and Hong Kong, not more vulnerability for Hong Kong.'

As regards Hong Kong's participation in equity, I agree by and large with your reading of the situation, but you may be slightly optimistic about their attitude to the proposed tripartite discussions. As Christian Adams reported in telegram INDUS 218 of 13 December the Governor is most concerned at the proposed involvement of the Hong Kong Government,

and would certainly need to consult the Executive Council before a higher level of involvement could be contemplated. The best answer might be:

'That is for the Hong Kong Government to decide, in the light of Hong Kong's interests.

HMG would of course have

no objection to such a course.

But this should be discussed with Hong Kong. Gordon Manzie may wish to sound the Governor out when he is in Hong Kong.

CONFIDENTIAL

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