"
r
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The
consideration by CLP and Exxon and is worth about £700M. Department of Industry are trying to arrange another negotiated contract and believes SLK is inclined to follow this route, but Exxon still remains undecided. A success conclusion will require the type of commitments by HMG given for the "A" station. On the financial side, the support by ECGD of CLP's
urther borrowing requirements will involve a greater liability than any previously assumed in any one market. This concentra- tion of risk is currently being considered by Departments in its widest context but no firm commitment of financial support can be given to SLK at this stage.
GUANGDONG PROJECT
5.
This is the topic upon which SLK will probably concentrate. Following an agreement to install an electricity link between Kowloon and the Chinese Province of Guangdong the electricity utility (KEC) proposed a joint study with CLP into the feasibility of building a nuclear PWR power station in Guangdong to be financed through the sale of electricity to Hong Kong. CLP in turn, recognising its lack of nuclear expertise, approached HMG for tech- nical support in carrying out the study. Ministers endorsed UK industrial and official involvement including the offer of UK technical support. Secretary of State for Industry wrote to SLK on 8 April, 1980 confirming support for his attempts to establish these links between Hong Kong and the Peoples Republic, and offering UK advice, including that from UKAEA.
6 The joint KEC/CLP studies are progressing very satisfactorily, and a favourable recommendation is anticipated before the end of the year.
In parallel with the joint studies, an interdepartmental Whitehall team has been formed to deal with the commercial and potential aspects so as to further the possibility of UK hardware
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