12.5

MEMORANDUM FOR EXECUTIVE COUNCIL

-6 JUN 1980HE PROPOSED CONSTRUCTION OF A NUCLEAR POWERED GENERATING STATION IN GUANGDONG

Aprios Teken

DESK OFFICER

INDEX

No

PA

RK THE PURCHASE OF ELECTRICITY FROM CHINA

Introduction

(a)

(b)

(c)

(d)

The purpose of this memorandum is:

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нир

See HR/2 186/1

1982

to inform Members of the possibility that a nuclear power plant might be constructed in Guangdong, as a joint venture involving the China Light and Power Company Limited, the Guangdong Electric Company and possibly other parties;

to inform Members that it is intended to seek suitable arrangements whereby the Hong Kong Government is kept advised on a continuing basis of further developments concerning the proposed project, inter alia so as to ensure, as far as possible, that adequate account is taken of Hong Kong's interest in the substantial environmental and safety implications of the project;

to seek Members' advice on whether, as a matter of policy, power companies in Hong Kong should be permitted to purchase electricity from power stations situated in China; and, if so, whether such purchase should be made conditional on the maintenance of reserve capacity in Hong Kong of a similar level to that which would be considered necessary if the plant were in Hong Kong; and

to seek Members' advice on whether the Hong Kong Government should, at this stage at least, discourage any suggestions that it might participate directly in the proposed joint venture referred to at (a).

Background

2

The desire of the Chinese Government to develop a nuclear power programme has been apparent for some time. In late 1978 and early 1979 a number of exploratory discussions took place between the

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CONFIDENTIAL #

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