00 WASHINGTON
GP S620
CONFIDENTIAL
FROM F C 0 191011Z APR 82
TO IMMEDIATE WASHINGTON
TELEGRAM NUMBER 759 OF 19 APRIL
HITH 166||
RICEVIO
↑ ADD (2)
2:2.57
AND TO PEKING AND BTC HONG KONG
No
24/4
AF
FOLLOWING TELEGRAM NOW REPEATED TO YOU AT REQUEST CF DEPT WAS SENT TO PARIS TELEGRAM NO INDUS 31 OF 14 APRIL
PERSONAL FOR AMBASSADOR
(WP
WP
FROM MRS BELL
GUANG DONG NUCLEAR POWER PROJECT:
A SUBMISSION HAS BEEN SENT TO MY SECRETARY OF STATE FOR HIM TO REPORT TO THE PRIME MINISTER ON THE VISIT BY THE G P C/C L P DELEGATION. THE REPORT WILL OUTLINE THE OPTIONS TO BE TAKEN IN SEEKING TO SECURE MAXIMUM UK INVOLVEMENT IN THE PROJECT. COPIES OF THE RELEVANT PAPERS ARE BEING SENT IN THE BAG.
THE NEXT STEPS AS WE SEE THEM ARE:
1) TO RESPOND POSITIVELY TO AN EXPECTED INVITATION FROM THE CHINESE TO VISIT GUANG DONG TO DISCUSS FINANCING FURTHER, PRIMARILY IN RELATION TO THE CONVENTIONAL ISLAND:
2) THE VIEWS OF THE US STATE DEPARTMENT TO BE SOUGHT ON WHETHER CLEARANCE WOULD BE GIVEN FOR P W R TECHNOLOGY TO BE TRANSFERRED TO CHINA THROUGH THE N N C AS WESTINGHOUSE'S LICENSFE,
3) NN C-L ED VISIT TO GUANGDONG TO DISCUSS AN ANGLO/AMERICAN NUCLEAR ISLAND TO GO FORWARD, PROVIDED THE RESPONSE FROM THE STATE DEPARTMENT IS FAVOURABLE AND A CONVINCING PACKAGE CANBE OFFERED TO THE CHINESE (TIMING OF THE VISIT TO BE DECIDED):
4) DISCUSSIONS WITH THE FRENCH TO BE RESUMED AT OFFICIAL AND COMMERCIAL LEVEL.
ON (2) THE DEPARTMENT OF ENERGY HAVE NOW ASKED OUR EMBASSY IN WASHINGTON TO APPROACH THE STATE DEPARTMENT. WE HAVE CONSIDERED HIBBERT'S COMMENTS IN HIS INDUS 4 OF 3 FEBRUARY WHERE HE REFUTES LORD KADOORIE'S ASSERTION OF HIS AND OUR MORAL OBLIGATION TO INFORM THE FRENCH OF ANY APPROACH MADE TO THE AMERICANS, AND SUGGESTS THAT AT LEAST AT GOVERNMENT LEVEL WE SHOULD PLAY OUR CARDS CLOSE TO OUR CHEST. SUBJECT TO ANY UPDATED VIEWS YOOU MAY HAVE WE DO NOT PROPOSE TO INFORM EITHER LORD KADOORIE OR THE FRENCH OF OUR CONTACT WITH THE AMERICANS BUT REALISE THAT THEY MAY WELL OBTAIN THIS INFORMATION IN DUE COURSE THROUGH OTHER CHANNELS.
ON (3) IF THE RESPONSE FROM THE STATE DEPARTMENT IS POSITIVE,
NN C AND G E C WOULD WHICH WE WOULD EXPECT, THEN WESTINGHOUSE, CONTINUE DISCUSSIONS TO ESTABLISH WHETHER A COHERENT COMMERCIAL PACKAGE ON THE NUCLEAR ISLAND COULD BE OFFERED. PROVIDED THIS PACKAGE CAN BE PUT TOGETHER THE NN C-L E D VISIT SHOULD TAKE PLACE THOUGH ITS EXACT TIMING WILL BE A MATTER FOR CAREFUL CONSIDERATION.
ON (4) CUR OBJECTIVE WILL BE TO TRY AND FIND OUT MORE ABOUT FRENCH THINKING ON THE PROJECT, AND IN PARTICULAR TO TRY AND ASCERTAIN WHAT THEIR STARTING POINT WILL BE IN DISCUSSIONS ON FINANCE. WE SHALL ALSO WISH TO PRESS ACAIN THE POSSIBILITIES OF UK INVOLVEMENT IN A PREDOMINANTLY FRENCH NUCLEAR ISLAND, INCLUDING THE POSSIBILITY OF B NFL PROVIDING FUEL AND SERVICES. THERE IS
A SEVERE TIME CONSTRAINT ON ANY INITIAL DISCUSSIONS WITH THE FRENCH IN THAT THERE COULD WELL BE CHANGES IN THE CONSENSUS RATES FOLLOWING A MEETING OF THE CECD COUNTRIES CREDIT AGENCIES IN WAY. WE WOULD LIKE TO HAVE HELD A MEETING WITH THEM BEFORE WE SEEK INTERNATIONAL APPROVAL OF OUR PROPOSED INITIAL CREDIT OFFER AT THE CLD RATES. I WOULD THEREFORE BE GRATEFUL FOR YOUR VIEWS ON THE POSSIBILITY OF A MEETING AS SOON AS POSSIBLE THIS MONTH. THE PREVIOUS MEETING WITH THE FRENCH WAS HELD ON 9 FEBRUARY 1981 IN PARIS WITH THE FOLLOWING OFFICIALS:
UK MR MANZIE, D/INDUSTRY
MR PETRIE, HM EMBASSY
MR KAY, HM EMBASSY
MR BENJAMIN, D/TRADE
MR MANLEY, D/ENERGY
MR HAVELOCK, D/INDUSTRY
MR MCLAREN, FCO
FRENCH
M ESPER, DELEGUE A L'ACTION EXTERIEURE, MINISTRY OF INDUSTRY
M OUVRIEL, DIRECTOR GENERAL OF INTERNATIONAL RELATIONS, CEA M PELLEN, MFA
M TRODON, MINISTRY OF INDUSTRY
WE PROPOSE, SUBJECT ACAIN TO YOUR COMMENTS, A SIMILAR FORMAT, NAMELY A SMALL MEETING OF SENIOR OFFICIALS AND THAT THIS TIME IT SHOULD BE HELD IN LONDON.
I WOULD BE GRATEFUL FOR YOUR URGENT COMMENTS ON ALL THESE PROPOSALS, PARTICULARLY A MEETING WITH THE FRENCH. ENDS
CCN N TRIDON, MINISTRY OF INDUSTRY
PYM
NNNN
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