TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 228

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the Chinese. We run the danger of losing the goodwill and

We risk either the French or the

support of Lord Kadoorie.

we

Americans seeking to make a pre-emptive bid on their own -

know that both the French turbine company Alsthom and

Westinghouse's turbine division have made overtures to the

Chinese. And if we had to go to the negotiating table at short

notice in the near future we could find ourselves unprepared:

detailed position on certain technical questions and on a

financial package cannot be finalised until we know with which

partner we may be working.

a

7 Nevertheless, despite these risks, my assessment is that for

the present we should continue to pursue both routes and seek to

bring the American option to a state of readiness for negotiation

comparable to the French option. The primary advantage in

pursuing this course is that it would enable the UK to keep its

negotiating strategy as flexible as possible. It is clear that

some elements at least within the Chinese authorities are seeking

to keep their own negotiating options as wide as possible and I

consider that it would be premature to narrow the options on the UK

side at this stage. Unless and until we have an indication to

the contrary from the customer we should continue to pursue an

Anglo/American package within our range of options since this

holds the prospect of providing a higher proportion of goods and

services from the UK.

5 CEC endorse

GEC endorse this view.

While the French at present appear to

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