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The third contender, Westinghouse, is preferred from the technical and safety point of view, but is known to have an inclination to supply only the NSSS. The attitude of the American administration to the direct supply of nuclear hardware is also uncertain and cannot necessarily be relied upon. The views of the American and French Governments on nuclear non-proliferation will also need to be sought though that of the latter is more likely to align with the UK's position.
The role of NNC, NII and CEGB
The inter-relationship with the UK's own possible PWR programme cannot be ignored. An arrangement is being established between NNC/ Westinghouse/Bechtel for the design and supply of the UK's first PWR nuclear island. To build on this has attractions. The exchange of experience could benefit the UK and China projects and would help overcome any doubts about the ability of GEC to take total responsibility for what could be the UK's first PR built in an unknown and potentially difficult foreign environment.
Equally however NNC in particular are likely to be heavily committed in the UK and should not divert scarce resources abroad. Officials will therefore investigate with GEC and NNC the commercial options available and the resources required adequately to pursue this project against existing priorities.
The N1I have been asked to advise the Government of Hong Kong on safety issues. Not only are their resources also stretched, but they could be faced with having to offer views on a French nuclear island which has not been chosen for the UK's own programme. Officials will therefore seek to minimise N11 involvement and the associated risks.
The commitment of CEGB resources will be necessary, during the initial operation of the station given the lack of CLP and KEC expertise. Officials will pursue this issue with CEGB.
The Credit Package
The finance package offered will be vital. The Chinese will be looking for maximum finance and maximum credit in order to make the project self financing as far as possible. Under the terms of the OECD Standstill Agreement ECGD could agree support for a 907 loan repayable over 12 years but would prefer abinitio to offer support for an 85 loan over 10 years, the latter being the terms which EEC members of the Consenus are seeking to have recognised as appropriate for power stations, both conventional and nuclear.