Brief No 8/1
HEC whilst simultaneously impressing the Chinese who are prospective customers in this sector.
FUTURE PROSPECTS
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i)
Castle Peak B
In the course of the next few months CLP and Exxon will be studying a consultant's report on the next phase of the Castle Peak development and it is currently expected that 2-4 generators of the order of 660 MW each will be required although Exxon themselves have not yet decided if they wish to participate. The Department of Industry has had preliminary discussions on the purchasing policy that will be pursued and it appears that, although a negotiated contract has not necessarily been precluded, Exxon are currently inclined towards some more open form of competition.
Consultants for this stage of the development are shortly to be appointed and we are naturally keen that a British consultant should be successful.
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ii) Chinese Nuclear Venture
The Secretary of State should be aware that discussions are currently in progress between CLP and the Guangdong provincial authorities in China on the supply of electricity from Guangdong to Hong Kong from a nuclear power station, probably a PWR which may be purchased by Guangdong. We are keen to maximise the UK manufacturing content in any such station and Departments have been concerting their approach to this inevitably sensitive issue; the Embassy in Peking, the Trade Commission in Hong Kong and the Hong Kong Government are being kept fully informed. The Hong Kong Government although in principle prepared to purchase power supplies in this way, have still to take a final decision on the point and as detailed studies have still to be carried out the project is still at a very early stage.