CONFIDENTIAL
Furthermore it has been suggested by the Chinese that an injection of equity from
the UK would secure some influence. However the precise meaning which the
Chinese attach to "equity" is uncertain and needs to be explored with them.
There are political constraints which Ministers will also need to consider.
Equity should in any event not be offered until it is clear what is necessary to
secure out commercial interests, and only then as a final step in securing them.
Consideration will also have to be given to the arrangements for sharing
liabilities in the event of a nuclear accident.
8. It could also prove desirable to select one of the two potential partners
in preference to the other and present a joint collaborative package to the
Chinese. In doing so it will be prudent to keep alternative options open,
particularly with regard to the other potential supplier, since the final decision
rests with the Chinese.
CONFIDENTIAL
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