SEP 23 '86 15:43 TIBCOOU) HK GOVT

the first 6 years.

5

Thereafter, in accordance with

Hong Kong's practices, a price equal to cost plus

reasonable profit would be the fair price to charge.

Cnce business contracts were signed, there should

not be promises made outside the terms of the

contracts.

China would support the CNPJVC contract,

and Hong Kong should have confidence in the agree-

ment. As to the price in 13 years' time from now,

this was too remote for consideration.

(c)

to gather as much facts about nuclear power developments

in China as possible: During our three-day discussions

and exchange of views with the experts of the Ministry

of Nuclear Industry and the National Nuclear Safety

Administration, we obtained a great deal of valuable

information on the experience and latest developments

in nuclear energy in China, much of which were

unknown to us before. We are particularly impressed

by the work done and that is planned to be done by

the NWSA which make us realise that China has placed

"safety" and "quality" as top priorities in the

development of nucleur energy. Throughout our

discussions, we have also obtained a deeper under-

standing of the Chinese national policy for the

development of nuclear energy. The Chinese Government

considers that the development of nuclear power

generation is essential to the successful implementation

of the four modernisations programe and that it will

help to resolve the present energy problem in China.

/In

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