GR 1670
CONFIDENTIAL
CONFIDENMAL
HKKC 166||
RALDIVED IN REGISTRY NO. 51 2 5 JUL 1980
DESKBY 230830 Z
FM BTQ HONG KONG 230104Z JUL 83
KOEX
TO IMMEDIATE F C O
PA
REGISTRY Action Taken
Aw257
Pri
66
TELEGRAM NUMBER BTC 101 OF 23 JULY
INFO SAVING PEKING (ACTIONED), WASHINGTON
MIP T. FOLLOWING IS MARSHALL'S RECORD 1-
KEC/CLP EXECUTIVE COMMITTEE TUESDAY 22ND JULY 1980.
THE MEETING OF THIS COMMITTEE TODAY WAS VERY GOOD, AND CONFIRMED IN DETAIL THE SENSE OF THE TELEGRAM FROM DEREK MARCH A FEW DAYS AGO. MR SHIH (KEC) OPENED THE MEETING BY GIVING A WARM WELCOME TO THE NEW PROPOSALS AND SAID THAT THE IDEA OF INVOLVING THE HONG KONG GOVERNMENT AND THE UK GOVERNMENT WAS IMPORTANT AND VERY WELCOME TO THE CHINESE SIDE.
2. SIR LAWRENCE KADOORIE THEN MADE A WRITTEN STATEMENT EXPLAINING THAT CLP COULD NOT TAKE EQUITY DIRECTLY IN THE NUCLEAR POWER STATION, BUT THAT CLP SHAREHOLDERS COULD PARTICIPATE TOGETHER WITH THE UK GOVERNMENT AND ITS ASSOCIATES INDIRECTLY THROUGH A HONG KONG BASED NUCLEAR INVESTMENT COMPANY. HE SAID HE WAS PREPARED TO DISCUSS THIS MATTER WITH THE BRITISH GOVERNMENT DURING HIS FORTHCOMING VISIT TO THE UK, PROVIDED HE HAD A VERY DEFINITE ASSURANCE FROM THE CHINESE SIDE THAT THIS METHOD MEETS THEIR WISHES. KEC FORMALLY AGREED AND WELCOMED THIS PROPOSAL. THEY SAID THAT IT HAD THE SUPPORT OF THEIR TOP PEOPLE IN PEKING.
3. THE MEETING THEN TOOK A REPORT FROM BILL STONES ON THE WORK OF THE MANAGEMENT GROUP, AND MR CHEN GANG MADE HIS OWN COMMENTS ON THOSE MEETINGS. HE SAID HE AGREED WITH STONES THAT VERY RAPID PROGRESS HAD BEEN MADE RECENTLY, AND HE AGREED THAT A BIG ENGINEERING PROJECT OF THIS KIND REQUIRED GOVERNMENTS TO BE
INVOLVED ON BOTH SIDES.
4. THE MEETING THEN TURNED TO THE REPORTS OF THE SUB-COMMITTEES BUT MR SHIH INTERVENED TO SAY THAT ALL THOSE HAD GONE WELL, THERE WAS NOTHING CONTROVERSIAL IN THEM, AND THAT WE SHOULD TAKE THEM AS READ. THE CLP SIDE AGREED TO THAT.
5. THE MAJOR PART OF THE DAY'S DISCUSSION WAS ON A PAPER
ENTITLED 'W F STONES' UNDERSTANDING OF KEC'S VIEWS ON THE PROJECT''. THIS PAPER WAS ANALYSED LINE BY LINE WITH THE CHINESE SAYING EXPLICITLY WHAT HAD EXPRESSED THEIR VIEWS CORRECTLY, AND WHAT THEY WANTED TO HAVE AMENDED.
6. THEY AGREED THAT A NUCLEAR POWER STATION COMPANY (NPS) IS TO BE SET UP IN CHINA FOR THE MANAGEMENT AND OWNING OF A NUCLEAR
CONFIDENTAL
/POWER