TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 33

JH 415

CONFIDENTIAL

Hver 166|1

PRIME MINISTER

GUANGDONG NUCLEAR PROJECT

FED

XPS.

PS hard Bellind,

·PSAUS Mrhiffard Mr. Donald Mr. Gillmore, HULD

NED,

TRED

7 Pine 8/12

WED,

NAD

FA

72

T3112

This minute reports on the main points discussed during Li Peng's

visit to the UK last week. I was grateful for your and Geoffrey

Howe's agreement that we might indicate to Li Peng a willingness

to offer capitalisation of pre-commissioning interest instead of

local cost support: in the context of the negotiations, however,

I decided it was not necessary to improve our credit terms at

this stage.

2

The Chinese focussed exclusively on proposals based on French

nuclear technology. When asked for his view on the American

option in the light of the State Department's position, Li Peng

said that he considered it dead.

3

The Chinese tested on us the French proposal that France

should take the lead on the whole project, offering GEC some

disparate sub-contracts. I made it quite plain to Li Peng that

this proposal was not acceptable. UK Government support for the

project, including using our influence in Hong Kong, depended on

GEC being awarded the whole conventional island contract, though

GEC would be content to supply the conventional island to