CONFIDENTIAL
GUANGDONG NUCLEAR POWER PROJECT
BACKGROUND
The Guangdong Province of the Peoples Republic of China has with other South China Provinces been accorded special development status.
This together
with the general priority given to increasing electrical generating capacity will result in a considerable growth in the demand for power plant which cannot easily be met by fossil fuelled stations. The Guangdong Provincial Government with the support of Peking is therefore currently considering the
possibility of a nuclear power station.
2. Because of a shortage of foreign exchange to purchase the necessary Western technology, KEC (the Guangdong Electricity Company) propose to finance the purchase of the hardware from the sale of electricity to Hong Kong. Exploratory discussions have taken place between KEC and CLP (the China Light and Power Company Limited which supplies electricity to Kowloon and the New Territories and whose chairman is Sir Lawrence Kadoorie) and with the Nuclear Power Corporation. The Secretary of State for Industry informed the Prime Minister and Ministerial colleagues of developments on 25 October 1979.
PURPOSE OF PAPER
2a.
We see considerable opportunities for Brit maufactures
Potential UK collaboration in such a project raises important issues
of foreign policy including UK and Hong Kong relations with China;
nuclear policy including proliferation; and industrial policy including
co-operation in the nuclear field with other countries.
25.
This paper seeks to alert Ministers to the main issues involved and seeks
Ministerial approval to a recommended line of action.