WHEREAS the Guangdong Electric Power Company and China Light and Power
Company, (hereinafter referred to jointly as "Client") have submitted to
the Gunagdong provincial authorities and to the Government of the
People's Republic of China and to the Hong-Kong Government and to the
United kingdom Government a feasibility report recommending the
construction of a nuclear power plant in Guangdong (hereinafter referred
to as "the Project") to supply electricity to the Guangdong Electric
Power Company system and to the China Light and Power system in Hong-
Kong, and
WHEREAS FRANATOME and GEC have separately approached the Guangdong
Electric Power Company and China Light and Power Company for the supply
of the Nuclear Island and the Conventional Island respectively, and
WHEREAS in consideration of the fact that in the feasibility report
submitted by the Client to the Chinese authorities it is stipulated that
2 preference will be given to British and Chinese
participation
in the construction
manufacturers
in
of the conventional part of the
station if their offers are technically sound and are competitive
price and financial conditions and that such preference appears to be a
pre-condition to CLP's commitment for purchase of electricity therefrom
and in consideration of the close relationship between CLP and CEC and
in consideration of the interest expressed by the Chinese Authorities
and China Light and Power Company in FRAMATOME for the nuclear portion
of the Project, both GEC and FRAMATOME have come to the conclusion that
their chances of securing a contract or contracts (hereinafter referred
to as Contract(s)) for the Project would be improved by combining their
efforts, and