J
CONFIDENTIAL
33. Although the CEGB does not have any PWR experience at the moment, it will need to acquire this for its own PWR programme and has in any case staff trained on both Magnox and AGR stations. Training for PWR's is expected to take place both in the USA and in France to begin with, and later on at the CEGB's own facilities. Given a strong commitment by the CEGB. it would be within their capabilities to train the additional 40 or 50 men who would be needed in Guangdong. The exact timescales for both the Guangdong project and the UK's own PWR programme is unclear but it may be necessary for the UK training programme to be advanced by up to a couple of years if the CEGB is to run the whole KEC station. A high degree of commitment by the CEGB will be necessary and if Ministers agree, officials would propose to sound out CEGB on a package of resources that might be made available to support CLP. This package would be offered to the Chinese at an appropriate stage in the negotiations. It is assumed that the client will pay for the services provided.
Conclusions
34
There are good indications that this substantial project will go ahead, provided the PRC can obtain favourable terms. Departments are agreed that it offers considerable commercial and political benefits to the UK and Hong Kong. We therefore recommend that Ministers
(a) endorse the participation of officials and the UK
Atomic Energy Authority in discussions with the PRC;
д (b) approve an equity investment by HMG and HKG up to
on the assumption that itka win taka
a similar widing.
US $20m each;
?
(c) approve the acceptance by HMG of liability for Hong Kong in the event of a nuclear accident; do not accept liability for any damage within the PRC; enter into negotiations with the government of the PRC to conclude a bilateral agreement accordingly;
- 12 -
CONFIDENTIAL