Replacement of Lost Nuclear Power
13 In the event of a serious accident, the UK might be expected to meet
some liability for the cost of providing alternative power supplies to
Hongkong. It could be argued, however, that since the PRC does not at
present supply Hongkong with any power, the only cost which should be
considered is that which might arise from the difference between operating
a coal or oil fired power station compared with the nuclear station, As
there is no legal commitment to supply power, the question of any liability
would be a commercial one for settlement between the operating company and
the Hongkong Electricity Supply Company.
Conclusions
14 The responsibility for meeting most of the risk liabilities of the
Guangdong project would rest with commercial interests. The UK Government's
liabilities should be limited (apart from ECGD insurance and fuel provision),
to those resulting from a severe nuclear accident. The would be:the probable
loss of investment in the operating company; the cost of technically directing the cleaning up operation; and third party liability. There is no compelling
logical or legal reason for HMG assuming the latter. project is essentially a joint venture and the PRC is likely to insist on shared liability as part of the price for preferring equipment and other supplies from the UK. If this price has to be paid, we should aim for the
PRC to accept that:
(a)
(b)
However, the Guangdong
the operating company should have strict liability up to an agreed limit UK contractors should not be liable;
the PRC Government should accept all residual liability
for damage within the PRC and that in return, no claim
would rest against their government in respect of damage
in Hongkong;
The above arrangements would need to be set out in a bilateral agreement
between the PRC and the UK.
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