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CONFIDENTIAL
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previous discussions suggest that we could not expect much movement.
With
the Americans, only 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 the balance of components and first
fuel charge for the nuclear plant, with the further prospect of becoming one
of the sources for the long term fuel supply. The note at Annex B summarises
the principal arguments for and against each partner on the basis of packages
structured on these lines.
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.
I
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 and
the political significance of the project in strengthening the links between
China and Hong Kong. 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 tactics CLP stand in a key position.
also attach considerable weight to the comments made by Vice Premier Gu The
to Peter Rees and by Prime Minister Zhao Ziyang to Humphrey Atkins on their
recent visits to Peking which suggest that other things being equal
the Chinese still favour the French for the nuclear island and the UK for
the conventional island. However even if we thought it in our interests
to seek to make a pre-emptive bid with the French now, recent soundings
suggest that Framatome are likely to be reluctant to sign an agreement with
GEC at present. The French say that they think a Chinese decision to go
forward with the project is still a long way off.
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