TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 252

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CONFIDENTIAL

(2) Assuming the Chinese dual source their fuel supply British Nuclear

Fuels Limited would probably win one of the contracts for the long

term supply of fuel for the plant, worth perhaps £250m7;

(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;

erishna

(5) This option would strengthen our involvement with Westinghouse on the

UK domestic nuclear programme and would encourage a greater transfer

of PWR technology to the UK.

(6)

The prospect of supplying components of the nuclear island for both

Mon

Sizewell and Grangdong would offer a worthwhile market for UK manu-

facturers;

The arguments against Westinghouse are:-

(1)

The Americans have achieved no special position with the Chinese

on the Guangdong project comparable to the French

though Westinghouse

have recently signed an agreement with the Chinese to work together

on the development of turbines;

(2)

This option may not prove viable because of the difficulties of the

relationship between NVC and Westinghouse.

would

In the context of the

arguments on non-proliferation it will be vital that NNC should be

seen to take a prominent role as the principal agency supplying WR

technology to the Chinese. In their contractual relationship, however,

would Westinghouse wild need to be the main contractor and NNC their sub-

contractor since NNC has insufficient capitalisation to shoulder more

CONFIDENTIAL