TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 99

SECRET

- 2

Flag E

3 September, to consider all aspects of the Pakistan programme,

including the alleged Chinese connection. The results of these discussions, in so far as China is concerned, are

summarised in Washington telegram number 2947 of 3 September.

It seems certain that there is no prospect whatsoever of getting the required US waiver before the Prime Minister's

visit. On the other hand, if we can eventually succeed in

calming US worries about Chinese involvement (helped, perhaps

by some clearer Chinese expressions of disassociation from

the Pakistani programme than they have provided so far), and

if we are also able to obtain satisfactory Chinese assurances

that the nuclear material at Guangdong will be used exclusively for peaceful purposes, there is some prospect that the matter may eventually be resolved. It would not, therefore, be right at this stage wholly to rule out the UK/US bid for Guangdong

in favour of the alternative UK/French bid.

5. In consultation with the Departments of Energy and Industry, an appropriate passage has been drafted for inclusion in the briefing material for the Prime Minister's

visit.

MK Harhell

6 September 1982

D K Haskell

cc: .PS/Mr Hurd

PS/PUS

Mr Donald

FED HKGD SAD

SECRET

Nuclear Energy Department