control adequately safeguard the position both of the consumers and of the power companies, and whether any improvements are required. The consultancy study should be completed before the
end of the year.
51.
(iii) Guangdong Nuclear Power Station
Last December, the Chinese Government decided that a
nuclear power station should be built in Daya Bay, east of Hong
Kong. The longer-term demand forecasts suggest that Hong Kong
will need additional generating capacity in the 1990s. We have
therefore been considering possible participation in the
project by Hong Kong interests, and the terms on which Hong Kong might purchase electricity from the power station. The Government is ready to support Hong Kong's involvement in the project, but it must be satisfied that such involvement will
ultimately prove to be in the interests of Hong Kong's
consumers.
52.
As part of its evaluation of the long-term
implications for Hong Kong, the Government commissioned merchant bankers to advise on the financial implications of the
project; their report is now being studied. It raises a number of important issues which will need to be discussed with
the Chinese Authorities. Our preliminary assessment
however, that, provided these discussions prove satisfactory,
it ought to be possible to negotiate an off-take agreement
which will be of benefit to all concerned.
is,
18
/(4) SOCIAL