2
ATTACHMENT FOUR
3
1. Q.
CONFIDENTIAL
Answers Provided by Management Committee
Why this insistance by the KEC on equity participation on basis?
a 60/40
A.
When asked why KEC prefer CLP equity participation, Guang gave the following reasons:-
Mr.
Chen
(a) KEC wished to acquire CLP management techniques through CLP
(b)
participation participation,
in
management.
it would
not
If there was по
be possible
CLP equity for CLP to
participate in management of the nuclear power station.
investment by KEC mean part This is of
If CLP participates in equity, the initial would be less, accepting the fact that this will of the profits would go to foreign investors. particular importance when foreign currency requirement is considered. If CLP is to participate, KEC would require very minimal foreign currency as
investment because
their
for m of labour for
participation
will be
construction and civil works.
in
initial
a
2.
Q.
Why do they continually mention this?
that
top PRC officials
favour
A.
to this question
is not known. It can
be
3.
Q.
The precise answer interpreted, however, that PRC has put a lot of emphasis to this
the it would strengthen project because
connection between the PRC, the U.K., Guangtung Province and Hong Kong. As this project has such a big political impact to all concerned, support from top PRC officials is vital.
as this will be the first the Four station in China and being symbolic of Modernisations, it is not surprising that it received attention from the top officials.
nuclear power
Besides,
that
neutrality
in
Our
negotiations
is
not
of
Why the hints primary importance?
A. KEC stated that they did not expect CLP to maintain neutrality in the first place. Given the choice of joint venture and CLP being and no joint venture or
CLP being neutral, KEC would probably opt for the former.
"biased"
KEC indicated that CLP had the right to insist on neutrality but maintained. As far as KEC did not request for neutrality to be they are concerned, they anticipate CLP to obtain U.K. support on this project. They agreed and encouraged CLP
approach Government on this matter. KEC said U.K. support to CLP on this project was just as important as PRC's support to KEC.
with
to
U.K.
this
like to
KEC
CLP that agreed
nature required project of a
not therefore they would backing from Governments and proceed with this project without U.K.'s support.
A.
Q.
why
A.
that
we
should
come
out
in
the
open
and
the suggestion advocate British plant?
KEC has no
Having accepted that U.K.'s support is required for this project, they accepted the fact that U.K. would suggest the project to use British plant in exchange for the support from U.K. objection in using British plant (except nuclear island) provided that the price and performance of British plant are competitive.