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DESKBY FCO 070800Z
DESKBY DTI £70800Z
FM HONG KONG 0707222 JULY 80
TO IMMEDIATE FCO
TELEGRAM NUMBER 855 OF 07 JULY
INFO IMMEDIATE DTI
NIR
миковы
RECEIVED IN REGISTRY MO. 51 16 JUL 1980
DESK OFFICER
INDEX
No
PA
RIMR
29/7
REGISTRY Action TakeOn
ऋण
DTI TEL TO BTC NO INDUS 184: GUANGDONG NUCLEAR PROJECT.
TUR ASKED FOR HONG KONG GOVERNMENT'S VIEWS ON KADOORIE'S
PAPER BEFORE A MEETING TO DISCUSS FINANCING ON 7 JULY.
2. AT THIS STAGE THE POINTS WHICH NEED TO BE TAKEN INTO ACCOUNT
IN CONSIDERING FINANCE ARE AS FOLLOWS:-
see
(72)
See HRR 1661 (20)
(1) EXCO, WHILE SUPPORTING THE CONCEPT OF BUYING ELECTRICITY FROM
CHINA, HAS DECIDED THAT THE PROVISION OF ELECTRICITY SHOULD REMAIN
IN PRIVATE HANDS AND THAT THE GOVERNMENT SHOULD NOT PARTICIPATE
DIRECTLY IN A JOINT VENTURE.
(II) THE PRINCIPAL POLITICAL ADVANTAGES WILL BE, FIRSTLY THAT SUCH
A MAJOR UK/HONG KONG/GUANGDONG PROJECT WOULD GENERATE MUCH GOODWILL AND HABIT OF COOPERATION, AND SECONDLY THAT ITS ATTRACTIONS TO THE
CHINESE IN TERMS BOTH OF AMORTISATION OF FOREIGN LOANS AND LONG
TERM REVENUE WOULD DEPEND ON HONG KONG REMAINING PROSPEROUDS AND
OUTSIDE THE REMINBI ZONE. IT WOULD THEREFORE HELP POLITICALLY IF
THE LOANS WERE AMORTISED OVER 15 OR MORE AFTER COMPLETION OF THE
PLANT RATHER THAN A SHORTER PERIOD.
(111) BECAUSE OF THE SCALE OF THE POTENTIAL RISK, INSURANCE TO COVER ACCIDENTS WILL HAVE TO BE AT UK GOVERNMENT/LEVEL (PROVIDING
OF COURSE A SUBSTANTIAL ELEMENT OF UK EQUIPMENT IS INVOLVED). BUT THIS IS A PROBLEM WHICH CAN BE CONSIDERED SEPAARATELY LATER IF
AND WHEN THE LIKELIHOOD OF A NUCLEAR POWER PLANT WITH
SUBSTANTIAL BRITISH CONTENT IS MORE CERTAIN.
Hub
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