(b)
(c)
8 -
CLP to establish a Project Management Company, registered in Hong Kong in which KEC would participate in providing project management for the construction of the nuclear power station.
CLP to provide joint management and operational services. for the nuclear power station until the loan was repaid and to establish a training program for the KEC and CLP staff.
Mr. Stones stated that these ideas were raised for discussion.
11.
Mr. Chen responded that all the work done in the last six months was based on participation by CLP on an equity basis and that he was unable to offer his comment on the new method at this moment. He would, however, reflect these ideas to the Guangdong Provincial Government and the State Council with whom the final decision on the project lay. He mentioned that this project was known, to the Chinese leaders including Chairman Hua Kuo Feng, Mr. Deng Xiao Ping (Vice Premier), Mr. Li Xian Nian (Vice Premier), Mr. Hu Yao Bang (Party General Secretary), Mr. Zhao Zi Yang (Vice Premier) and Mr. Gu Mu (Vice Premier and Head of State Capital Construction Commission) and that he had been at meetings
the on
project at which more than ten ministers were present.
12.
Mr. Stones explained that one of the reasons for
for raising this alternative method of joint venture was that the consequential liability of nuclear incidents was very heavy which could eliminate the whole of CLP capital. CLP was unable to take the risk. It was necessary to limit CLP's liability if CLP was to participate on an equity basis.
13.
1
Mr. Chen suggested that if the possibility of CLP participating on an equity basis was small, there was no need to continue with the
studies. present
He enquired whether CLP was proposing to treat the new method of joint venture as an alternative method or in fact proposing to abandon the method of joint equity which was being studied. Mr. Stones replied that CLP was proposing to treat the new method as an alternative and that CLP would continue the present studies on economics, system design, power station siting and equipment because these studies would be essential whatever method of joint venture was adopted.
Cont'd