The question of restoring and re-commissioning the plant following Gaevere nuclear accident, would depend upon the extent of the
damage caused and the resultant financial state of the owner/ operator. The UK's investment would almost inevitably have been
lost.
Third Party Liability for Severe Accidents
8. Although the probability of a severe accident is small the resulting damage to persons and property unconnected with the station could be very great. The practice under international
conventions to which the UK is a party is for strict liability for
damage, ie without proof of negligence or other fault, to be placed on the operator up to an insurable limit set by the national law with the relevant government bearing liability in excess of that, also up to a fixed limit. (See Annex A.)·
9. The PRC is not a party to any of the international conventions and the obligations imposed by them would not therefore apply to the PRC or in respect of damage caused in the PRC. The PRC authorities have, however, already indicated that they will look
to HMG to assume some sharing of the financial liability for damage to third parties. To the extent that HMG takes an equity holding in the proposed Hong Kong Investment Company, which is to be the joint owner and operator of the nuclear power station, it would inevitably do so, since this very investment would be at
risk. (There would be additional liabilities attaching to the transport of nuclear materials to and from the UK (described at Annex B), but these would arise in any arrangement for the supply of fuel services by the UK.) The important point to be considered is whether HMG should accept any further liability.
10. The PRC could contend that since the construction and operation
of the nuclear power station will be a joint venture by PRC, Hong Kong and UK interests, with Hong Kong sharing in the station management and product, the Hong Kong and UK Governments should accept a proportionate share of the third party liability. Against this, it could be argued that while western interests will be involved in the running of the station, the operating company will be incorporated in the PRC and will ultimately be under PRC control.
Moreover, the responsibility for the maintenance of safety standards would rest with the PRC authorities.