CONFIDENTIAL
DSR 11C
between), the chances of damage there are considerably
less than in the PRC. The contingent liability would
if shant than be less if shared on a territorial basis than, in
Water
ト
proportion to the respective PRC and Water holdings
in the operating company;
(b)
The people of Hong Kong would have a reliable guarantee
Whill kn of compensation in the event of nuclear accidentinot
dependent on PRC acceptance, eg of valuations of
property and expectation of life, which might differ
H.M. G's while in the project what in plas considerably between Hong Kong and the PRC.
in
this
assumpth of Labilly care abdo
This could
help overcome public resistance in Hong Kong to the
Guangdong project;
(c) By placing strict liability on the operating company,
(d)
5.
with the PRC, Hong Kong and UK Governments standing
behind it, it might be possible to exempt British
their
suppliers from the normal liability for damages
arising from fault of design, equipment or operation.
However this exemption should not extend to non-
British suppliers unless their governments were
similarly prepared to accept some residual third party
liability. Otherwise they should be liable in the
normal way.
In practice this should mean that those
primarily liable to pay compensation should have a
right of recourse against their suppliers when fault
on their part can be proved;
The liability would exist only as long as Hong Kong
and the New Territories remain the responsibility of
Churauch
the UK outside the control of the PRC.
If liability is to be shared, the way this is to be
achieved will need to be expressed in some form of agreement
between the UK and the PRC. In theory this might be
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CONFIDENCES