TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 251

CONFIDENTIAL

The arguments against such a partnership are:-

(1)

It is clear that there are factions within China both at national

and provincial 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 400m 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;

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 600m for the turbine generators plus the

balance of the nuclear island which could be supplied from UK

sources plus the first fuel charge;

CONFIDENTIAL