an interest in any power from China in that HE's and CLP's system are now interconnected and the reserve capacity of the HEC system might be drawn upon in the event of a power failure from the proposed nuclear station in China (paragraph 20). When informed that CLP and GPC were working together towards establishing a nuclear power project, HEC sensibly decided to disengage from GPC so as to avoid complicating further an already complicated situation. But they have continued to express an interest in the project and in the possibility of investing in it.

36

It is suggested that CLP should now be asked to give HEC in confidence a sight of the feasibility study report, if HEC so wishes, with a view to considering sympathetically any interest HEC may show in investing in HKNIC.

Public relations aspects Consultation

37

The feasibility studies referred to in paragraph 2 were submitted to the Governor in confidence and have not been discussed with any body outside of the Government other than CLP.

Public reaction

38

From the economic viewpoint, it is expected that the public would welcome any proposals which would make electricity cheaper than it would otherwise be. There might be some disappointment that the savings were not more significant. Likely public reaction to the safety and environmental aspects will be dealt with in subsequent memoranda (paragraph 3).

Publicity

39

In the absence of a reaction from China, it is not proposed that there should be any public announcement at this stage.

Financial and staffing implications

40

There are no financial or staffing implications directly associated with the advice sought in paragraph 41.

Advice sought

41

Members are asked to advise whether:

SECRET

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