TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 235

CONFIDENTIAL

they can work out the details of the necessary contractual

relationship with their UK licensee, the National Nuclear

Corporation (NNC),

The arguments against such a partnership are:- ̈

(1) It is clear that there are factions within China- certainly

at provincial and possibly also at national government level

which favour a partnership with the Americans on the grounds

that they are likely to be able to offer more advanced technology

and greater technology transfer to China;

(2) We could not expect to win more than approximately £300m of

the total value of the contract since Framatome would expect

to supply virtually all the nuclear island equipment;

(3) The possibility of securing even a small proportion of the fuel

supply contract say £50m-is not rated highly by British Nuclear

Fuels Limited;

(4) GEC have no practical experience of working with Framatome, and

past Anglo-French industrial ventures have met with mixed success;

(5) We would be expected to match the financial terms offered by the

French which may involve conceding more favourable credit terms

than an Anglo/American package;

(6) While the granting of approval of the Sizewell PWR is a

public issue it would be unhelpful for HMG to appear to cast

doubts on the adequacy of the westinghouse.NNC design.

CONFIDENTIAL