SECRET

B

5.

At the end of last week the Governor's assessment

(Hong Kong telno 2132) was that with few exceptions earlier support for Hong Kong involvement in the project had turned

to opposition. He expressed the view that after the LegCo

debate on the

the adjournment scheduled for 16 July, to be

devoted to Daya Bay, we should be fortunate to get through

the rest of the Legco session, which continues until the

end of July, without a further debate. This could be on а

motion expressing the view that the Chinese Government

should be asked to move the plant (or, possibly, to convert

it to a thermal station).

6. On 4 July, however, UMELCO decided to mount their own

investigation into the safety aspects of

independent

nuclear power.

I assume (although I am seeking the

Governor's confirmation of this point) that the possibility

of an early hostile motion in Legco has therefore receded.

We may have a breathing space in which more rational attitudes can reassert themselves: but this is by no means

certain.

7.

It would nonetheless be as well to consider what some

of the implications would be if, sooner or later, such a

motion was to be tabled and adopted in LegCo. It would present the Hong Kong Government and ourselves with a very difficult prospect. Depending on the exact terms of the

motion the Governor might well argue strongly that the only

tenable position for the HKG would be for official members

of LegCo to associate themselves with such a motion.

8. Whatever the exact position adopted by officials, the implications of such a motion for UK/Hong Kong relations

could be serious. Unless we were seen to be ready to

protect Hong Kong's

Hong Kong's interests, we could face the charge

that we were disregarding the fears of the Hong Kong people, motivated only by concerns of commercial gain and

desire to maintain good relations

good relations with China. But

our

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