TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 236

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CONFIDENTIAL

WESTINGHOUSE

The arguments for a partnership with westinghouse are:-

(1) This might raise the total value of goods and services supplied

to perhaps as much as 500m for the turbine generators plus

the balance of the nuclear island which could be supplied from

UK sources;

(2) British Nuclear Fuels Limited would probably win a major share

of contracts for the supply of fuel to the plant in its first

15 years, worth perhaps £250m, and there is some chance of

their supplying the first fuel charge.

(3) Westinghouse are likely to be able to offer more advanced

technology than Framatome;

(4) GEC have already worked with Westinghouse on building PWRS in

Korea;

(5) This option would strengthen our existing involvement with

Westinghouse on the UK domestic nuclear programme and would

encourage a greater transfer of PWR technology to the UK. This is of great importance to Dr. Marshall.

(6) The prospect of supplying components of the nuclear island for

both Sizewell and Guangdong would offer a more worthwhile

market for UK manufacturers,

The arguments against Westinghouse are:-

(1) The Americans have achieved no special position with the Chinese

CONFIDENTIAL