GRS 650
CONFIDENTIAL
CONFIDENTIAL
FM HONG KONG 1208352 SEPTEMBER 80
TELEGRAM NUMBER 1162 OF 12 SEPTEMBER
TO FLASH F C O
Акк 160
RECEIVED IN REGISTRY NO. 51 15 SEP 1980
DESK OFFICER
INDEX
PA
! REGISTRY
0.1-34
¡Action Taken
FOR MORRICE HONG KONG AND GENERAL DEPARTMENT FROM (JEAFFRESON.
"Awish P
YOUR TELNO 759.
See (116
GUANGDONG NUCLEAR.
AS WE RECEIVED YOUR LETTER OF 5 SEPTEMBER AFTER WE RECEIVED YOUR T U R, COULD YOU PLEASE TREAT THE FOLLOWING
COMMENTS ON THE PAPER AS A PRELIMINARY REACTION DESIGNED TO MEET YOUR
DESKBY.
EQUITEY PARTICIPATION
2. OUR VIES ON EQUITY PARTICIPATION ARE AS IN PARAGRAPH 2 CF OUR TELNO 941 AND THE REFERENCES TO EARLIER TELEGRAMMES IN THAT PARAGRAPH. THE SECTION ON THIS ASPECT IN YOUR PAPER FOCUSES TOO MUCH ON PARTICIPATION BY THE HONG KONG GOVERNMENT AS SUCH. PRESENT ADVICE FROM EXECUTIVE COUNCIL IS THAT HKG SHOULD NOT RPEAT NOT PARTICIPATE IN THE JOINT VENTURE, THE SUPPLY OF ELECTRICITY BEING IN PRIVATE HANDS (PARAGRAPH 2 (1) OF OUR TELNO 855). ON THE OTHER HAND, WE SEE PARTICIPATION BY HONG KONG INTERESTS AS A SIGNIFICANT FACTOR IN ENSURING SECURITY OF SUPPLY AND CLP'S INVOLVEMENT IN THE MANAGEMENT OF THE PROJECT. BUT THIS PARTICIPATION COULD BE BY PARTIES OTHER THAN THE HKG. FOR EXAMPLE, WE HAVE NOT YET UNDERSTOOD CLP'S ARGUMENTS FOR CLP NOT PARTICIPATING AND OUR UNDERSTANDING WITH CLP IS THAT THEY ARE STILL CONSIDERING THEIR POSSIBLE ROLE IN THIS RESPECT. THIS SAID, THE PAPER IS CORRECT (PARAGRAPH 13) IN POINTING OUT THAT WE HAVE NOT RULED OUT THE POSSIBILITY OF HKG PARTICPATION, WE WOULD HAVE TO SEEK THE ADVICE OF EXECUTIVE COUNCIL ON THE BASIS OF A CLEARLY ARGUED CASE WHICH WE WOULD NOT BE ABLE TO DO UNTIL WE GET THE FULL FEASIBILITY STUDY AT THE END OF OCTOBER, WE WOULD THEN HAVE
TO SEEK THE NECESSARY FUNDS FROM THE LEGISLATIVE COUNCIL.
3. TC SUM UP, WE WOULD PREFER THE PAPER TO REFER TO ''PARTICIPATION BY HONG KONG INTERESTS' RATHER THAN BY
**THE HONG KONG GOVERNMENT'' BUT WITH A DEGREE OF PARTICIPATION
BY HKG NOT RULED OUT.
LIABILITIES
4. THE REFERENCE TO THE SITE IN PARAGRAPH 26 (A) IS NO LONGER CORRECT. THE THREE POSSIBILITIES NOW FAVOURED ARE IN ORDER
CONFIDENTIAL
/OF
115