CONFIDENTIAL

9) CHINA'S BELIEF THAT HONG KONG CAN AND DOES CONTINUE TO PROVIDE AN ESSENTIAL ELEMENT IN THEIR FOUR MODERNIZATIONS PROGRAMME, AND

THAT IT IS VERY MUCH IN THEIR INTERESTS TO PRESERVE THE STATUS QUO OF HONG KONG FOR A PERIOD BEYOND 1997, HAS BECOME OF GREATER IMPORTANCE BOTH TO THE PRC AND, IN MY OPINION, ALSO TO THE BRITISH

GOVERNMENT, THAN THE EARLIER CONCEPT OF A PROJECT FOR THE CONSTRUCTION OF A NUCLEAR POWER STATION IN GUANGDONG TO SUPPLY ELECTRICITY TO HONG KONG AND CHINA.

10) MY COMMENTS HAVE SO FAR DEALT ONLY WITH THE HISTORIC AND

POLITICAL ASPECTS. IT MUST, HOWEVER, BE OBVIOUS THAT THERE ARE

VERY SUBSTANTIAL BENEFITS TO BE GAINED BY U.K. INDUSTRY AND U.K.

INTERESTS.

11) FROM THE POINT OF VIEW OF THE U.K. GOVERNMENT, SOME OF THESE-

BENEFITS ARE:

1) A DEMONSTRATION OF THE EXPERTISE AVAILABLE THROUGH THE UNITED

KINGDOM IN THE FIELD OF NUCLEAR SCIENCE AND TECHNOLOGY: 1) EARLY EXPERIENCE WITH PWR DESIGN AND OPERATION PRIOR TO COMMISSIONING THE U.K.'S FIRST PWR IN THE EARLY 1990'S: 111) A UNIQUE OPPORTUNITY TO RE-ESTABLISH BRITAIN'S PREMIER

POSITION AS A CHINA TRADER BY CEMENTING UK/CHINA RELATIONS. IV) CREATION OF EMPLOYMENT IN BRITISH INDUSTRY.

12) TO END ON A COMMERCIAL NOTE, IT IS PLEASING THAT FINANCIAL STUDIES ALREADY SUBMITTED TO THE DEPARTMENT OF INDUSTRY SHOW THE

PROJECT TO BE VERY PROFITABLE.

ENDS.

MARCH

FILES

JNU

HK & GD

FED

TRED

MR PH MOBERLY

ADDITIONAL DISTRIBUTION

GUANGDONG NUCLEAR

-

- 3-

CONFIDENTIAL

Share This Page