CODE 18.77

FROM

NII THS

9. 5.1986

15:15

RESTRICTED

Reference...1/NUC/417/1.

P. 2

Mr. Ryder Mr. Woods

Mr. Agrell (D.En.) Mr. Barton (FCO)

MR. A. LORD

Secretary to the Commission

Room 313

Regina House

VISIT OF DR. CULLEN CHAIRMAN OF THE HSC TO HONG KONG

13TH-17TH SEPTEMBER 1986

Proposed Nuclear Power Station at Daya Bay

Dr. Cullen should know that:

1.

It is expected that the Chinese Government will shortly order a nuclear power station from the French to be built at Daya Bay - 30 miles, from Hong Kong. Financing for the contract is being shared between the China Light and Power Company of Hong Kong and the Chinese, with some of the electricity generated being supplied to Hong Kong. This is causing great concern in Hong Kong, especially post Chernobyl.

2. The Hong Kong government have therefore requested that UK Ministers make a statement expressing their confidence in the safety of the station and also in the assurances given by the Chinese Government on the station's safe operation. The aim would be to help steady opinion in Hong Kong before contracts are signed later this month.

3. The NII have been approached by the Department of Energy for assistance albeit they themselves have so far resisted any suggestion that HMG might underwrite the safety of Daya Bay which is being built by a French concern on Chinese territory.

4. The NII have taken the line that we know little about the project and are not in a position to make any definitive statements, either on the standards proposed for the design and construction or the Chinese standards of operation. (or emergency preparedness). It is expected that two 900 MW pressurised water reactors will be bought from the French but whether they differ in any respect from the standards which rule in Françe is not known. Therefore, the furthest that the NII could go in endorsing the project would be that of giving general expressions of respect for French work and experience.

5. We have, however, agreed with the Department of Energy that a Chinese delogation be invited to visit the UK early next year with the main aim of discussing the problems of building up and maintaining a nuclear regulatory system. The visit would be expected to last one week, with the NII giving presentations for one and one half days. The remainder of the time being spent with the AEA and the CEGB.

!

6. The project is seen of great importance to the UK, as GEC are expected to obtain the contract worth some £250m for the conventional generating equipment (they have a special relationship with the China Light and Power Company which has been built up over many many years). It should also be noted that the Prime Minister will be meeting the Governor of Hong Kong and his Executive Council on the 10th or 12th of September.

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