TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 227

ይግ

INFORMATION CONFIDENTIAL

the major decisions of principle on the project will be taken in

Peking rather than at provincial level. However, I believe we

cannot discount these counter-signals. Moreover, Westinghouse,

in contrast to Framatome, are now pressing for rapid progress.

Westinghouse are anxious that the UK Government should now

approach the State Department in Washington to seek clearance

under the Non-Proliferation Act for the National Nuclear

Corporation as a Westinghouse licensee to supply PWR technology

to China. Officials accept that such an approach is a necessary

step in developing the Anglo/American option, though its precise

timing will require consideration. Providing outstanding

contractual and technical difficulties can be resolved, and we

receive a favourable response from the State Department, in two

or three months it may be possible to achieve a credible

Anglo/American package to weigh against the Anglo/French package

which has already been developed. I understand, however, that

GEC are less sanguine than Westinghouse about the likely rate of

progress.

6

There are several risks attached to continuing to hold open

both options. HM Ambassador in Peking has advised that if we

delay too long in seeking to make a pre-emptive bid with one

partner, we may miss the opportunity to influence the thinking

and attitude of such an unsophisticated and uncertain customer

INFORMATION CONFIDENTIAL

ស