TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 134

C

CONFIDENTIAL.

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Continuation Sheet No.

4

File No.

a)

Obtaining from the US State Department a firm, long-term

commitment to Westinghouse participation in a UK consortium

and the transfer of technology to the Peoples Republic of

China;

b)

The holding of further discussions with French

Government officials to establish the UK's position with the

French in case State Department approval is not forthcoming;

c)

Consideration of the UK aid programme to China,

particularly in view of the emphasis placed upon this by

the Chinese, and the activity of our competitors;

d)

Consideration of capitilisation of pre-commissioning

intext;

e)

Assembly of a fully competitive package of hardware

and services;

f)

Consideration of our negotiating position on the

Bank of China guarantee, the equity participation of China

Light and Power and the subsequent liabilities.

12

There are many hurdles to overcome in bringing this project

to a successful conclusion. If these can be resolved, and if the

1 Chinese consider our offer to be acceptable, we shall wish to offer

propose that we stojá

to them a draft Memorandum of Understanding regarding British participation in the project, to be signed by you and the Chinese Prime Minister during your visit.

m SS/29A

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