8.
9.
10.
11.
With an edited edition of the views, set out in my memorandum of 18th June, 1980, were conveyed to the KEC by Mr. Stones at a Management Committee meeting held
on 27th 30th June, 1980, they were very badly received.
12.
-
Mr. Chen Gang, Deputy General Manager of KEC, was
most upset saying that all negotiations so far had been on the basis of a joint venture company. This company should be so designed as to provide for a substantial
He understood profit not only to the KEC but also to CLP. CLP's inability to assume the enormous risks involved when considering a nuclear power station and felt that CLP's change of attitude might be due to a lack of confidence in the stability of the PRC and its continuity of policy. He wished Mr. Stones to assure CLP that such a belief was completely unfounded.
Mr. Chen Gang then mentioned that all negotiations that had taken place between KEC and CLP were reported to the highest authorities in Peking and that any change at this stage would cause the KEC considerable embarrassment.
This attitude made me think there could be considerably more to the KEC's desire to have a nuclear power station. Perhaps this was a hint, a political move, and a nuclear power station jointly owned by the British and Hong Kong Governments and the PRC might be a major factor in solving the problem of PRC/British relations over the lease of the New Territories.
In consequence, I asked CLP's representative on the
Management Committee a number of questions, to which
· I received answers. These are set out in Attachment Four.