DEPARTMENT OF TRADE
51
R line cay to Me Move (HKCD
My SID to DST (PEP) that the
FROJECTS & EXFORT POLICY DIVISION A
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GG Leader Esq
A Policy Department
Overseas Development Administration
Bld House
Sag Place
Lorton SW1E SDH
propose to reply
frolitical case, which we
strongly Subhat
is will set out at paras 11212 of the paper. Grateful your news
Fulir FEC 166/1 + sunt
Your reference
resulmat
Our reference PEP2070 32
Date 24 September 1982 2019
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CHINA: GUANGDONG NUCLEAR POWER STATION
SEC TURBINE GENERATORS/TATIONAL NUCLEAR CORPORATION, BRITISH NUCLEAR FUEL LTD
I attach a case paper prepared by the Mechanical and Electrical Engineering Division in the Department of Industry setting out the case for a possible ATP input into the financial package for this project. For the Lime being, this is not to be seen
formal submission to SCAT (and Ministerial authority has not yet been sought for such a submission), but we will be grateful for constructive comments from your Department and other SCAT members on the proposal set out in the paper.
For the information of recipier Ls who may not be in close contact with developments this project, it is a major item on the agenda for Ers Thatcher's discussions with Chinese leaders in eking; it is hoped that the Prime Minister's visit will eable some of the incertainties surrounding the project to be resolved. There may be an urgent need on the irime Minister's return (29 September) to take decisions o.. the finance package for the British bid. Although the lack of American approval or Westinghouse involvement in the project, and the lack of a clear lead from the client as to his preferred suppliers, may lead to further deferral of serious negotiations. The timetable was therefore very uncertain, but we feel that this should not prevent Departments considering how to meet the Chinese request for financing. This would e: sure that the commercial opportunity afforded by the current political initiative in China is not lost.
w things stand the proposal represents an initiation offer. Recent discussions wit the French confirmed they too are under pressure from the Chinese lo offer Leneroun financial terms and i 1930 the French did so on this project. As the project proposes use of aid in a Communist country the issue would clearly need
be resolved by Hi ister.
:
Be
1 to the UK for wining this business, whichever the combination of goods ervicen the UK woul. supply, are very substantial. As well as the obvious ustrial case, success in this project would prove a valuable`commercial entry the potentially vaut Cirese market for heavy electrical equipment. The prospect This project as an importart joint UK/Chinese/llong Kong enterprise gives it a Dial dimersion over and above these considerations, and we would welcome shotru tive comments on this aspect from the FC0. The UK power industry has shown
1.
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