CONFIDENTIAL
3
2.
N-PLANT IN GUANGDONG:
Prominence was given in newspapers, notably Wen Wei Po and Ta Kung Pao, to a Xinhua News Agency despatch which said approval had been given by the State Council for construction of a nuclear power plant in Guangdong. The plant would be equipped with two 900 000 kilowatt pressurised water reactors. A preliminary site had been chosen at Daya Bay, northeast of HK. The news prompted two pressure groups to repeat their concern over safety aspects. The proposed plant would cost US$6 000 million, and about 60 per cent of the electricity generated would be sold to HK. Loans repayable over 25 years would be raised to finance the project to be developed jointly with CLP. Commenting on this, the New Evening Post said, if conditions were right, it was believed that China and Britain would jointly develop this project which provided long-term co-operation well beyond 1997. The Wah Kiu Man Po quoted unnamed diplomatic sources saying that the decision showed that China did not intend to absorb HK into Chinese terrritory. Later in the week, Ta Kung Pao and Sing Tao reported that stage II of the negotiations between the Chinese Government and CLP would start early next year. The talks would centre on financing and acquisition of equipment.
The newspapers carried front page reports of the remarks of Mr. Liu Tianfu, Governor of Guangdong, that the proposed plant did not threaten the safety of people living here. The Yangcheng Evening News quoted Governor Liu saying this to a group of pro-communist HK residents; he was also reported denying press reports that the plant was to be built on Dapeng Bay or Mirs Bay, adding that Daya Bay was very far from HK and he did not know where the erroneous reports came from. He said the plant was very important and would have great significance in solving the energy problem in Guangdong and in boosting HK's development. The Standard on Saturday, in a story headed 'Boos and cheers for China N-plant project', reported that the British Government was said to be very happy about the project and hopes were high that a major proportion of the work would go to GEC. However, Mr. Peter Ryan, was quoted as questioning the morality of a government (China) that dared to fly in the face of the non-nuclear proliferation pact. The SCMP on Sunday reported that CLP would conduct more studies with the Guangdong authorities on the feasibility of building the station before any further commitments involving the company could be made. A statement by Lord Kadoorie said the project required continued detailed studies. The Conservancy Association was quoted questioning the safety of the plant. There were no comments linking the proposed plant with the future of HK.
3.
NEW IMMIGRATION POLICY:
On December 22, the Government announced a new policy requiring visitors from China to return upon expiry of their two-way permits with effect from the following day. The new measure was taken after an agreement reached with Guangdong during a visit by a Government delegation headed by the Political Adviser. Officials hoped that, under this new policy, about half of the 145 daily legal arrivals from China would return after their stay here.
CONFIDENTIAL