TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 63

expressed this view to my officials, Lord Kadoorie and Sir

Walter Marshall;

c) co-operation with the French would reduce ECGD's

financial exposure to about £1000m from £4000m for an

Anglo-American proposal. The absolute cost of any

concessions on financial terms would be reduced. And

perhaps most important, we would avoid being played off by

the customer against the French on Finance terms;

d) we could try to secure UK participation in the fuel

supply through negotiation with the French; if we negotiate

with the Chinese for the conventional island business only,

British Nuclear Fuels Limited will have little opportunity

to secure contracts which could establish them in the

international PWR fuel market;

e) if the French were to supply the nuclear island they

would carry the primary responsibility for securing

non-proliferation assurances though the UK could also be

involved in negotiating assurances if we supply fuel.

Present indications are that, unlike the Americans, the

French would be satisfied with a statement from the Chinese

which the Chinese are willing to give that the station

would be used only for peaceful purposes.