CONFIDENTIAL
LHKKIES!
INDEX
- M2 3324381
D G Jeaffreson Esq
Secretary for Economic Services
Government Secretariat HONG KONG
مل
po i ₤3.12
HKK 166/1
3 December 1980
33
GUANGDONG NUCLEAR PROJECT
We have already reported in FCO telegram No. 1042 on the outcome of the interdepartmental meeting held at DOI on 20 November. I thought I should, in addition, let you know the response to the points raised in Hong Kong telegram No 1523.
2. The advice therein was that we should give more weight to the political arguments for the project as those on costing might turn out to be weak. Although this view was conditional on extra data you expect to receive from CLP and on the final version of the feasibility study, I was, nonetheless, surprised to find that no-one at the meeting had any doubt that the electricity exported to Hong Kong from the Guangdong nuclear project would have a considerable price advantage over anything which Hong Kong could produce domestically from conventional fuel sources. John Lippett of GEC, in particular, spoke with confidence on the project's economic viability. Is this something that needs to be thrashed out more thoroughly?
3.
Your position on Hong Kong Government equity participation was noted by the meeting and came as no surprise.
P Morrice
Hong Kong and General Department
CONFIDENTIAL