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BRIEF FOR MEETING BETWEEN LORD KADOORIE AND HE LORD PRIVY SEAL: GUANGDONG NUCLEAR PROJECTN
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Background
This project is for a proposed PWR nuclear power station
to be situated in the Guangdong province of China which would supply
a large part of its output to Hong Kong for sale by China Light and
Power Company Ltd (CLP).
A joint feasibility study was carried out by the Guangdong
Power Company and CLP, and a report delivered to the Chinese and
Hong Kong Governments in December 1980. Dr Walter Marshall of UKAEA
acted as technical adviser to CLP during the study.
The report recommended that a 2 x 900 MW PWR station should be
constructed, and expressed a preference for Chinese and UK non-
nuclear equipment and for French, German or USA supplier of the
nuclear hardware. The Chinese are still considering the report
and have yet to reach a decision, but recognise the significance of UK/Hong Kong and UK/CLP connections. The sale of electricity
to CLP is critical to the viability of the project, as only in this
way can the necessary foreign exchange be generated to enable the
project to be self-sufficient in foreign exchange.
One difficulty facing the UK is that as we do not have a total
PWR capability at present, it would be necessary for the conventional equipment supplier, GEC, to enter into some form of relationshi with a nuclear island supplier, in practice either Framatome
(France) or Westinghouse (USA). The benefit to the UK in commercial
terms could be anywhere between £370 m am £600 mdpending on the
choice of nuclear partner and the overall extent of supply.