TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 62

Nuclear Partner

5 Reports through CLP suggest that some Chinese officials at

-

least at provincial level still favour Westinghouse, largely

because they believe their technology is more advanced than the

French. Nevertheless, your discussions both in Peking and

Guangzhou indicated clearly a strong preference for an

Anglo-French proposal, reiterating Premier Zhao's comments to

Humphrey Atkins in January. The Premier's remarks must

presumably be given greater weight than any countervailing views

in Guangzhou. Moreover, there is little hope of movement in the

State Department's position on nuclear exports to China before

the end of the year at the earliest. And first indications are

that a Westinghouse/NNC nuclear island could not compete on price

with Framatome.

6

At the same time there are strong arguments for seeking

French support for GEC and Framatome entering into an agreement

between themselves (which would exclude Alsthom) to present a

joint bid:

a)

Premier Zhao's remarks combined with Lord Kadoorie's

long standing support for a GEC/Framatome solution indicate

a strong customer preference;

b)

GEC's preference has always been for an agreement of

this kind with Framatome;

Lord Weinstock has recently