CONFIDENTIAL
authorities, who have already indicated that they will look They
for HMG involvement in this may be expected to argue that
since the constraints and operation of the nuclear power
station will be a joint venture with PRC, Hong Kong and UK
interests and with Hong Kong sharing in the station manage-
ment and product, the Hong Kong and UK Governments should
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stand behind 'their' share of the operating company and
Shan of the
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theird party
accept proportionate liability. Against this it may 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, responsibility for the maintenance of
safety standards will rest with the PRC authorities.
4. A decision on this must be essentially one of tactics
but if it appeared that refusal to accept some third party
liability was likely to prejudice the project it may be
necessary to reach some compromise. One possible approach
might be to propose that while prime responsibility f
to meet chains damage be placed on the operating company for nuclear damage
showed wherever it occurs, the PRC be relieved of any further
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liability in respect of Hong Kong. In return the PRC
should accept that no claims could be made against the Hong
Kong or UK Governments in respect of damage in the PRC.
would of course be necessary to provide (either in Hong
Kong or UK legislation) that claims for compensation for
damages in Hong Kong, which could not be met by the operating
company, would be met (subject to an overall limit) would be
and/
art by the Hong Kong or UK Government.
number of advantages:-
(a)
This approach has a
Since the nuclear power station is planned to be
30 miles from Hong Kong (with a range of hills
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