ANNEX A

CONFIDENTIAL

DSR 11C

LIABILITY IN RESPECT OF TRANSPORT OF NUCLEAR FUELS TO AND

FROM THE UK

This liability arises in two ways:

(a) While in Hong Kong territorial waters under the

Nuclear Installation (Hong Kong) Order 1972, any

transporter of nuclear materials is strictly liable

for any nuclear damage in Hong Kong;

(b) While on the high seas the transporter of nuclear

materials to or from a designated nuclear facility in

a Paris Convention country is strictly liable for

nuclear damage to another convention country including Hong Kong (either to the country directly or to its

shipping, etc). BNFL, as the probable fuel supplier

for Guangdong will bear responsibility here as they do in respect of all their international nuclear fuel

services.

In both cases HMG could be liable to pay compensation where

damage exceeded 5m European Monetary Agreement Units of

Account.

CONFIDENTIAL

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