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CONFIDENTIAL
GUANGDONG NUCLEAR POWER PROJECT
PURPOSE OF FAFER
1
The Secretary of State for Industry informed the Prime
Minister and Ministerial colleagues on 25 October 1979 of talks between the Southern China Province of Guangdong and the UK nuclear and power plant industries about the possible sale of a nuclear power station to China. This paper which has been agreed between the Departments concerned (DOI, FCO, DOT and DEn): -
(a) outlines progress since then in discussions with the Guangdong Provincial Authorities;
(b) draws the attention of Ministers to the principal issues of foreign and industrial policy that are involved; and
(c) seeks Ministerial endorsement of the UK's continued
involvement in the project and approval of the line to take with the Chinese on the issue of nuclear safeguards.
BACKGROUND
2 Guangdong Province, with its rate of growth spurred by its being adjacent to Hong Kong, foresees a substantial growth in
electricity demand. It is considering the possibility of constructing a nuclear PWR station, initially of 1100MW, the cost of which would be offset largely by the sale of electricity to Hong Kong; this is clearly a key factor in the Chinese decision to consider a project of such magnitude. The value of the imported hardware might be some 8455m at current prices with a potential UK manufacturing element of about 80% as we do not yet have the abilit to supply a PR nuclear steam supply systen, the heart of the
nuclear island.
3 Earlier talks between the Chinese and the UK nuclear and power plant industries have recently been followed up by discussions between KEC (the Guangdong Electricity Company) and China Light and Power (CLF) whose Chairman is Sir Lawrence Kadoorie.
CONFIDENTIAL