CONFIDENTIAL

5. THERE HAVE BEEN SOME SUGGESTIONS THAT THE HONG KONG GOVERNMENT SHOULD SEEK TO HAVE THE PROJECT PUT ON ICE UNTIL THE COMMUNITY CAN BE ASSURED ABOUT SAFETY. WHILE INT INS DOUBTFUL WHETHER THIS CAMPAIGN

WILL GET UP ANY HEAD OF STEAM (UNLESS IT WERE TO GET SUPPORT FROM

UMELCO), THE FACT REMAINS THAT THERE IS A FEELING HELD BY SOME

MEMBERS OF THE COMMUNENTY THAT IT WOULD HAVE BEEN BETTER IF THIS

PROJECT HAD NEVER BEEN STARTED. IF UMELCO FAILS TO ENDORSE WHAT WE

AND THE JOINT VENTURE HAVE BEEN SAYING TO THEM (AND TO THE PUBLIC)

ABOUT SAFETY, THERE COULD BE TROUBLE. INF A SERIOUS ACCIDENT OCCURED IN IN A FRENCH REACTOR, PUBLING OPPOSITION TO THE PROJECT MIGHT BECOME

UNCONTROLLABLE.

6. WE (AND TO A MUCH LESSER EXTENT CLP) HAVE DONE WHAT WE CAN SINCE THE CHERNOBYL UNCIDENT TO ASSURE THE PUBLIC ABOUT SAFETY, RELYING

INCHIDENTALLY VERY HEAVILY ON THE ARGUMENT THAT WHAT IS GOOD ENOUGH

HN TERMS OF SAFETY STANDARDS FOR THE FRENCH IN FRANCE SHOULD BE

GOOD ENOUGH FOR US AND THE CHINESE. HOWEVER OUR POSITION IN THIS

MATTER IS UNIQUE #IN THAT WE ARE SPEAKING IN SUPPORT OF A PROJECT MAN WHICH THE HONG KONG GOVERNMENT HAS NOT DIRECT INVOLVEMENT BEYOND

*NTS TWO SEATS ON THE BOARD OF HONG KONG NUCLEAR INVESTMENT CO. LTD (THE HONG KONG PARTNER IN THE JOINT VENTURE COMPANY). MOREOVER THE STATION IS OUTSIDE OUR TERRITORIAL BOUNDARY.

7. IN THESE CIRCUMSTANCES WE HAD ALREADY COME TO THE CONCLUSION THAT

THERE WILL BE A NEED FOR HMG TO DENSCUSS WITH THE CHINESE ON OUR

BEHALF, PROBLEMS AND ISSUES WHICH ARE OF DIRECT AND REASONABLE *INTEREST TO THE HONG KONG COMMUNITY. THESE INCLUDE, INTER ALINA :

(Hi) SAFETY STANDARDS EN DESIGN, CONSTRUCTION AND, MIN PARTICULAR,

›N MANAGEMENT AND OPERATION POST COMMISSIONING :

(b) RÍMSK ASSEMSSMENT AND ENVIRONMENTAL IMPACT:

(HH!!) RADATION MONITORING:

(MY) NUCLEAR LIABILITY, IN PARTICULAR THIRD PARTY LOPABILITY #IN HONG

KONG.

8. AS YOU ALREADY KNOW WE HAVE RETAINED HARWELL TO ADVISE US ON SOME OF THESE ISSUES, BUT IT WOULD BE HIGHLY DESIRABLE TO CROSS CHECK WITH THE CHINESE ON THESE SUBJECTS. WE HAVE MADE A START IN THIS DIRECTION THROUGH WORKING LEVEL CONTACTS BETWEEN THE JOINT VENTURE COMPANY AND THE ROYAL OBSERVATORY IN HONG KONG ABOUT BACKGROUND

RADIMATION MONITORING. WE HAVE ALSO MADE SELECTED REPORTS FROM

HARWELL AVAILABLE TO THE JOINT VENTURE COMPANY.

CONFIDENTIAL -2 -

19.

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