given the need for deep water access, the competing claims for such sites and the associated problems of environmental protection. The purchase of electricity from Guangdong would ease, but on the scale proposed would not eliminate, the problem of finding new power station sites in Hong Kong. And this would apply equally whether the supply came from a nuclear plant
sojob.. or a fossil fired plant.
9
Politically there is much to be said in favour of buying some power from China, on the grounds that to do so would increase China's foreign exchange earnings from Hong Kong, and hence her interest in maintaining the status quo. From this aspect the project is doubly attractive in that amortisation of the foreign exchange element (which will extend well past 1997) would depend on Hong Kong's continued prosperity and expansion and on the territory remaining outside the RMB zone. The project certainly falls within the definition of "opportunities for co-operative effort which should be followed up" as recommended in paragraph 272 (pages 167-163) of the Report of the Advisory Committee on Diversification.
10 VAZ While it is improbable that the Chinese would wish to site a nuclear power station rear Hong Kong unless' assured of the foreign exchange earned from sales to Hong Kong, the possibility does exist. Thus, if Hong Kong decided against purchasing electricity from the proposed nuclear plant, what little chance it has of influencing the environ- mental and safety aspects, referred to in paragraphs 24-26 below, would be lost.
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The main disadvantage of such an arrangement would be the - obvious one that Hong Kong could be taking power from sources over
which it had no control, or control only to the extent that Hong Kong interests were managing the company. Thus the supply would have to be treated as potentially less reliable than power provided from within Hong Kong.
12
Taking all these considerations into account, it has been con- cluded that such a prestigious joint project would politically be very attractive, and in principle should have the support of the Hong Kong Government; consequently that the Government should agree, as a matter of policy, that the power companies may, if
y so wish, purchase electricity generated by a power station situated in China, provided that the amount taken is consistent with its potential reliability, and is com- petitive with alternative sources of supply.
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1 MAR
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