7.

In order to do this we must first define the reasons which inspired the present feasibility study and have brought it this far.

8. These are

9.

10.

11.

From the point of view of the KEC

(a) The desire to sell electricity to Hong Kong in order to

earn badly needed foreign exchange.

(b)

(c)

(d)

The desire to take advantage of the expertise available through CLP to assist in project management and in the commissioning and operation of China's first nuclear

power station.

To take advantage of the opportunity to train staff both during and after the construction period.

:

The desire to facilitate obtaining international loan finance for construction, and the prestige of eventually owning the first nuclear power station in China.

From the point of view of the Hong Kong Covernment

(a)

(b)

The desire to strengthen the bonds between the Hong Kong Government and the PRC, particularly in the light of the approaching termination of the lease of the New Territories.

To demonstrate Hong Kong's desire to cooperate in China's Four Modernisations Programme.

From the point of view of the U.K. Government

(a) The desire to demonstrate the expertise available through

the United Kingdom in the field of Nuclear Science and technology.

(b) To gain early experience with PWR design and operation prior to commissioning the U.K.'s first PHR in the early 90s.

1

(c)

To take advantage of what may be a unique opportunity to re-establish Britain's premier position as a China trader.

(a) To give employment to British manufacturers.

| (e)

To improve UK/China relations.

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From the point of view of CLP

(a)

(b)

To maintain their privileged position with the KEC and to be of assistance to all parties.

To strengthen interconnection with the distribution network in Kwangtung Province thus obtaining an additional source of relatively cheap electricity from a nuclear power station, and at the same time adding to their sphere of influence.

Note

The strengthening of friendly relations between CLP and KEC is particularly important in view of the fact that CLP have both their main generating stations, and the greater part of their distribution system in the New Territories, the lease of which falls due in 1997.

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