TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 225

INFORMATION CONFIDENTIAL

possibility of collaborating with Westinghouse.

3

As discussions now stand the likely shape of the package which

would emerge with either partner would be broadly as follows.

With the French, Framatome would supply the nuclear island and

the fuel supply while the UK would provide the conventional

turbine island. In view of the UK's limited PWR experience it is

unlikely that we would be given responsibility for the overall

project design and management of the project. With the

Americans, the core of the nuclear island, the nuclear steam

supply system, would be provided by Westinghouse. In addition to

the conventional turbine island, the UK would supply some of the

balance of nuclear plant components and a large proportion

of the long term fuel supply, with some chance of supplying the

first fuel charge. The note at Annex B summarises the principal

arguments for and against each partner on the basis of packages

structured on these lines, though it is important to note that

the extent to which the Chinese would be prepared to accept major

nuclear island components from UK suppliers remains uncertain.

4

In weighing the merits of each partner I attach great

importance to the views of China Light and Power (CLP) and those

of Lord Kadoorie in particular. When he visited the UK in

October last year he stressed to me the importance he placed on

an Anglo French approach to this project. As joint customer with

the Guangdong Power Company (GPC) for the power from the plant,

and as advisor to the Chinese on technical issues and negotiating

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