TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 144

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Department seeking similar assurances in respect of a possible UK/US deal, which would also involve the supply direct from Westinghouse of the power station's nuclear steam supply system. The Americans have not yet replied formally to this request, Flag D but in his letter of 29 June to Mr Haskell, Mr Bloom of the

US Embassy in London indicated that they were concerned over the proposed lack of safeguards and over Chinese export policies and attitudes to nonproliferation, and that they foresaw difficulties with Congress. In response to a request from the FCO, Embassy Washington have given their appreciation of the situation within the US Administration regarding the review of nuclear export policy towards China. They propose that they should speak to Under Secretary Kennedy and they foresee the possible need for a Ministerial message. Conclusion

Flag E

Flag F

9.

On balance, therefore, it would seem right not to object to the contract proceeding along the lines currently envisaged. However, if the US government eventually decide to attach to the release of US technology conditions which it would be impractical for us to fulfil, Ministers may wish to review the question again.

19 July 1982

cc: FED

HKGD

TRED

ORK

I R Kenyon

Nuclear Energy Department

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