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14. SO WITH THE BENEFIT OF ENTIRELY INDEPENDENT ADVICE AND AFTER CONSULTING THE EXECUTIVE COUNCIL, WE INFORMED CHINA LIGHT AND POWER OF THE GOVERNMENT'S WILLINGNESS, IN PRINCIPLE, TO ENDORSE AN OFFTAKE AGREEMENT SUBJECT TO RESOLUTION OF CERTAIN HSSUES. CHINA LIGHT AND POWER THEN FORMED THE HONG KONG NUCLEAR INVESTMENT CO. LTD.
15. KN THE COURSE OF OUR CONSIDERATION OF THE PROJECT MUCH ATTENTION WAS PAID TO THE ARRANGEMENTS FOR THE ESTABLISHMENT AND FINANCING OF THE HONG KONG PARTNER IN THE JOINT VENTURE COMPANY, THAT IS THE HONG KONG NUCLEAR INVESTMENT CO. LTD. THE FINANCING OF THIS COMPANY WAS THE SUBJECT OF THOROUGH AND PROLONGED DELIBERATIONS. THE COMPANY WAS FORMED WITH A PAID UP CAPITAL OF DOLLARS 300 MILLION WITH ADDITIONAL CAPITAL PROVIDED BY WAY OF A LOAN GUARANTEED BY GOVERNMENT WITH THE APPROVAL OF THE FINANCE COMMITTEE OF THIS COUNCIL. THIS ROUTE WAS FOLLOWED, THAT IS TO SAY, A LOAN BACKED BY A GOVERNMENT GUARANTEE, BECAUSE IT WAS FOUND TO BE A RELATIVELY CHEAP AND EFFECTIVE WAY OF PROVIDING THE COMPANY WITH SUFFICIENT FUNDS TO PAY ITS CONTRIBUTIONS TO THE JOINT VENTURE COMPANY ITSELF. * MENTION THIS MATTER SPECIFICALLY BECAUSE IT HAS BEEN THE SUBJECT OF COMMENT IN THE PRESS (AND INDEED IN THIS DEBATE).
16. WE RECOGNISED AT ALL TIMES THE IMPORTANCE AND COMPLEXITY OF THIS PROJECT. AND SO BETWEEN THE FEASIBILITY STUDY PN 1980 AND THE FORMATION OF THE JOINT VENTURE IN 1985, WE SUBJECTED THE PROJECT TO A LONG DETAILED EXAMINATION TAKING ACCOUNT OF THE SAFETY, FINANCEFAL AND ECONOMIC ASPECTS. MANY HSSUES WERE THOROUGHLY EXPLORED AND EXAMINED. WE HAD FULL REGARD TO THE INTEREST OF HONG KONG'S CONSUMERS AND THE PUBLIC AT LARGE. THE CONTRACTS FOR THE JOINT VENTURE AND FOR THE SALE AND PURCHASE OF ELECTRICITY WERE ENTERED INTO AFTER THE MOST THOROUGH CONSIDERATION AND
CONSULTATION WITH ALL PARTIES CONCERNED.
17. SOME HAVE SUGGESTED THAT THE GOVERNMENT SHOULD WITHDRAW INTS AGREEMENT. *N HAVE EXPLAINED THE CONTEXT IN WHICH THAT AGREEMENT WAS GIVEN AND ALSO TS SHGNIFICANCE. MUST EMPHASIZE THIS AFTERNOON THAT THE AGREEMENT WAS GIVEN AFTER THE MOST CAREFUL CONSIDERATION, AND ONCE IT WAS GIVEN AND CONVEYED TO CHINA LIGHT AND POWER COMPANY AND HONG KONG NUCLEAR INVESTMENT COMPANY, IT WAS ACTED UPON, THE CONTRACTUAL ARRANGEMENTS LEADING TO THE FORMAT HON OF THE JOINT VENTURE COMPANY WERE COMPLETED AND THE OFFTAKE AGREEMENTS WERE ENTERED INTO. THIS IS A BINDING COMMERCIAL AGREEMENT ENTERED INTO IN GOOD FAITH AND SIMPLY CANNOT BE WITHDRAWN: THE CREDIBILITY OF THE GOVERNMENT AND INDEED OF HONG KONG ITSELF WOULD BE SEVERELY DAMAGED WITH THE MOST SERIOUS CONSEQUENCES IN SO FAR AS OUR COMMERCIAL AND INTERNATIONAL RELATIONSHIPS ARE CONCERNED.
18. SIR, WHAT IS THE WAY AHEAD? CLEARLY, THE ADMINISTRATION SHARES IN THE GENERAL CONCERN EXPRESSED BY MEMBERS OF THIS COUNCIL AND, PNDEED, BY THE PUBLIC. WE HAVE BEEN TAKING ACTIVE STEPS TO ENCOURAGE ALL THOSE DIRECTLY INVOLVED THE PROJECT, *INCLUDING THE JOINT VENTURE COMPANY, THE SUPPLIERS AND PROJECT MANAGERS TO
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