مندر
PM/82/8
PRIME MINISTER
CONFIDENTIAL
Pz.
HKCK
16611
Bar Mom 14/2 Mr. Willmon
.FED.
SEPS
Ps/ups Mr. Donald
Mir Gillmore da RGD
NED
212/2
↑
flo 1512
Guangdong Nuclear Project
See
Scafio
1. I have seen Patrick Jenkin's minute to you of 8 February. This
was agreed in draft by FCO officials.
an
2. In all the circumstances the proposal to pursue both French and
American options vigorously seems to me still to represent the
best course to promote our interests. I recognise that both Lord
Kadoorie and HM Ambassador Peking have been arguing persuasively
for a firm decision to go in now with the French; certainly
Peter Rees and Humphrey Atkins were both told at senior Ministerial
level in Peking that, all things being equal, the Chinese favoured
Anglo-French package. But as Patrick Jenkin points out, there
are two strong arguments for not committing ourselves at this
stage, both of which are based on very recent information - namely,
French reluctance to commit themselves to us; and recent indications
from those Chinese involved in the detailed consideration of the
project at Provincial level that they intend to consider various
nuclear partners including French and American before making up their
minds. Indeed the Chinese Premier spoke of the Chinese wish for
competitive bids when he saw Humphrey Atkins.
3. Since political factors play a considerable part in Chinese
decision-making you might welcome a brief assessment of how we
see the current standing of the French and Americans in Chinese
estimation. The 'special position' into which the French appeared
to have manoeuvred themselves under President Giscard has been
eroded 'to some extent with the advent of President Mitterrand
(and difficulties during the French Trade Minister's visit last
autumn over the sentencing of the Chinese fiancee of a French
diplomat). The Chinese are also upset at the resumption of French
aid to Vietnam. But these are likely to be temporary setbacks.
CONFIDENTIAL
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