CCESSEDAL IN CONFIDENGE
Lu Ying seemed genuinely disappointed and unable to understand why Kadoorie was not prepared for CLP to take equity in the joint company and he
9 tioned Dr Marshall closely on the implications of HMG's involvement in the
British organisations listed above. Dr Marshall said that he could not take the
UK discussions any further until he had an ida why the Chinese were keen to have
equity involvement by the British. Clearly it was not primarily a financial
point. Iu Ying declined to give a direct response but answered quoting an old Chinese proverb "New clothes are the best to wear but old friends are the best
to talk to".
During this part of the conversation, mention was made of the supply of fuel from BNFL and Dr Marshall reiterated his belief of the importance that might
be attached to the guarantee of fuel supplies so that Hong Kong and China would
be assured of the reliability of receiving power from the nuclear plant. This
required a fuel supply from BNFL.
The discussion then turned to the technicalities of the latest develop-
ments that are taking place regarding safety precautions likely to be adopted
worldwide following Three Mile Island.
}
Dr Marshall outlined the most likely technical developments which have resulted
from discussions between NNC, CEGB and NII from the British side and Westinghouse and Bechtel from the USA; he pointed out that those developments related to the
PWR which it is planned will be built in the UK. Dr Marshall explained that it was important for the Chinese to understand this because the adoption of a
particular safety approach for the reactor to be built in Guangdong would, he believed, affect various decisions that would have to be taken by the project. The safety approach in particular affected the BONP and the choice of architect/ engineer but was unimportant for the choice of NSSS supplier and conventional plant supplier.
Following the interaction between NNC and Westinghouse, it seemed highly probable that Westinghouse would adopt this approach and German Law would compel KWU to have a system somewhat similar. For this reason Dr Marshall's opinion
was that in future "international standards" would be similar. Dr Marshall utilised a table which outlined the major component blocks which were required for the realisation of a nuclear power station (see Appendix to these notes).
2
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