TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 43

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CONFIDENTIAL

GRS 620

CONFIDENTIAL

Pollan's

FM PARIS 19184OZ NOV 82

TO IMMEDIATE DOI

TELEGRAM NUMBER INDUS 38 OF 19 NOVEMBER 1982

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LI PENG HAD FINAL MEETINGS WITH FRENCH MINISTERS TODAY AT THE END Morris 29% 1.

OF HIS TEN DAY VISIT TO FRANCE. FRENCH OFFICIALS HAVE BEEN AT PAINS

TO LET US KNOW THE OUTCOME OF THE VISIT IN ACCORDANCE WITH THE UNDERTAKING GIVEN BY CHEVENEMENT AT THE SUMMIT THAT BOTH SIDES SHOULD KEEP EACH OTHER INFORMED OF DEVELOPMENTS.

2. THE ACCOUNTS VARY IN EMPHASIS ACCORDING TO THE SOURCE. BAQUIAST (DREE) FOLLOWED BY DE FONT RELEUX (MINISTRY OF RESEARCH AND INDUSTRY) ADOPTING THE MOST PRO-FRENCH LINE. LORINO (CHEVEN- EMENT'S CABINET) AND ABOUDARAHAM (FRAMATOME) TENDING TO EMPHASISE THE IMPORTANCE OF A COLLABORATIVE APPROACH.

3.

LI PENG WAS IMPRESSED BY WHAT HE SAW OF THE FRENCH NUCLEAR PROGRAMME. HE WAS PARTICULARLY INTERESTED TO SEE THAT THE FRENCH HAD ALREADY BUILT A SERIES OF 900 MW UNITS ALL TO THE SAME DESIGN AND THAT ALSTHOM ATLANTIQUE HAD A GREAT DEAL OF EXPERIENCE OF TURBINES AT THIS RATING.

4. LI PENG IS ALLEGED TO HAVE SAID THAT WERE IT NOT FOR THE **HONG KONG FACTOR' THEN HE WOULD BE CONTENT FOR FRANCE TO BUILD THE SAME SORT OF UNIT AT GUANGDONG AS THEY HAVE IN THE FRENCH DOMESTIC PROGRAMME. BUT BECAUSE OF HONG KONG'S INTEREST IT WAS ESSENTIAL TO HAVE SOME BRITISH INDUSTRIAL PARTICIPATION IN THE PRO JECT.

THIS WAS THE FIRST TIME THAT FRENCH MINISTERS HAD BEEN TOLD THIS DIRECT BY A RESPONSIBLE CHINESE SPOKESMAN.

5. THE MOST SIGNIFICANT CHANGE IN THE CHINESE POSITION WHICH EMERGED DURING THE VISIT IS THAT LI PENG NOW SEEMS TO WANT RESPONSIBILITY FOR THE PROJECT AS A WHOLE TO BE INVESTED

IN A SINGLE CONTRACTOR, AND HAS MOVED AWAY FROM THE IDEA OF TREATING THE NUCLEAR AND CONVENTIONAL ISLANDS SEPARATELY.

6.

THIS REQUIREMENT TOGETHER WITH THE NEED FOR BRITISH PART ICIPATION LED TO A PROPOSITON THAT FRAMATOME SHOULD ACT AS THE PRINCIPAL CONTRACTOR, THEY WOULD CONSTRUCT THE NUCLEAR ISLAND, ALSTHOM ATLANTIQUE WOULD BE PRINCIPALLY RESPONSIBLE FOR THE CONVENTIONAL SIDE AND WOULD SUB-CONTRACT A PROPORTION OF THAT PART OF THE PROJECT TO GEC. THERE WAS APPARENTLY SOME DISCUSSION OF WHAT PERCENTAGE WOULD SATISFY GEC AND HONG KONG, BUT IN THE END THIS WAS LEFT TO BE WORKED OUT AT THE INDUSTRIAL LEVEL.

CONFIDENTIAL

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