– 2

5.

6.

Q.

A.

Q.

A.

KEC said that, from the first day when they talked to CLP on this project, they realised that as CLP is a British Company under the regulation of Hong Kong Government, influence from the U.K. in promoting British plant is inevitable. Afterall, although Hong

Kong is a Chinese land, it is presently under British

administration.

Why the reference to Hong Kong as British territory and that we could bring in participation by the British Government?

The true answer to this question may never be made known. It is, however, highly possible that PRC is trying to find a method of

status unchanged, getting Hong Kong's

and that this project development with KEC/PRC and

KEC/PRC and CLP/U.K. interests will help to achieve the objective. It should be noted that KEC have accepted 25 years' depreciation and 25 years contract, a period runs far beyond the expiration of the lease of the New Territories.

Why has China departed from its stated policy on non-nuclear power station development in the case of KEC/CLP?

-

This can never be interpreted as something to do with Hong Kong and the U.K. Nuclear Power Station being anywhere inside China has no political implication, but the one discussed by CLP and KEC has great political implication to the future of Hong Kong and U.K./China relationship. In short, this project has a lot of political elements which makes it worthwhile for China to depart from the stated policy.

It should also be noted that this project will use PWR which is not the type of reactor China wished to do in the long

long term (HWR).

This indicates the nuclear

power station consideration has a big political implication.

nuder

sklp:bc

2nd July 1980

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