TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 95

49

SECRET

нки і

661

NED

XPS,

PS/Mr.Hard PS/PUS. Mr. Willmore, Mr.Donald,

Nove

May you (47

FED

pr.

Lets

竹

HKED

SAD

PS/82/76

π farosla

PRIME MINISTER

40

see(50)

1.

Guandong Nuclear Power Station

Since I sent you my minute of 19 August, United Kingdom and United States' officials have held two meetings in Washington to discuss Sino/Pakistani collaboration in nuclear matters, and Under- Secretary of State Stoessel has replied to the personal message I sent to George Shultz. From these contacts, it has become clear that the Americans are still not yet able to agree to the release of US technology for the Guangdong project. They are still seriously concerned about the extent of Chinese involvement in the Pakistani nuclear weapons programme, and suspicions of Chinese reticence on this subject. Even if you personally take

the matter up with President Reagan, it seems very unlikely that this obstacle can be overcome before your visit to China. 2. Under these circumstances, it would now seem right for you to make it quite clear to the Chinese that it is only US hesitancy which is standing in the way of a joint UK/US bid for the Guangdong project. You could perhaps then go on to say that while we fully respect the Chinese wish to keep Guangdong entirely separate from wider political issues, anything they and we can do to reassure the Americans that the proposed deal raises no issues of genuine non-proliferation concern would be helpful to us both. This line of thought will be developed further in the briefing

for your visit.

SECRET

/3.