TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 121

I

HK Section

FROM THE

MINISTER OF STATE

FOR INDUSTRY AND

INFORMATION TECHNOLOGY

KENNETH BAKER MP

Peter Rees Esq QC MP Minister for Trade Department of Trade 1 Victoria Street SW1

сс

Mr. Job!

Dear it! Rees,

Аткада

NED.

Сс

P.A.

The propo

36

DEPARTMENT OF INDUSTRY

ASHDOWN HOUSE

123 VICTORIA STREET

LONDON SW1E 6RB

TELEPHONE DIRECT LINE 01-212

SWITCHBOARD 01-212 7676

PS/SOS

6401

Mr Manzie

Mr Benjamin PEP

Mr Salvidge PEP4

Mr Hutton

PEP1

Mr Havelock MEE (on file)

Mr Cox FED/FCO

Pas 1118

August 1982

GUANGDONG NUCLEAR POWER PROJECT

I have been taking a close interest in developments on the Guangdong project not least because of the potential to bring orders of over £1,000m to UK industry.

I learn that GEC have sought Government assistance through the OPF to offset some of the pre-contractual costs they estimate they will incur in pursuit of the conventional island contract. I understand the OPB panel considered that the prospects of securing the project were slim, but did however recognise that there were political factors which they were unable to judge.

My officials have recommended that taking account of the political indications, and the importance of securing this valuable and important contract, OPF assistance up to a maximum of £411,000 should be made available to enable GEC to maintain their wholehearted pursuit of this opportunity.

I myself attach great weight to the success of GEC in this project because the winning of this contract would provide much needed work of approximately 22-24,000 man years for GEC and their sub-contractors, mainly in areas of high unemployment, at a time when orders are very limited. It would enable the UK to get into the market for large high speed turbines for PWR plant, an area where the UK has no previous experience, and it would secure a foothold in the Chinese market where future orders for turbines may be considerable.

Given the political overtones, together with the strength of the industrial case, I would therefore strongly support provision of assistance from the Overseas Projects Fund for this project. I am copying this letter to John Belstead..

J

Surerily

APPROVED BY THE MINISTER AND SIGNED IN HIS ABSENCE

M55/M55AAC