BACKGROUND

1.

Since Chernobyl, China's proposal to build a nuclear power station at Daya Baya, some 50 kilometres from Hong Kong, has aroused widespread concern in Hong Kong about the implications for the territory of a nuclear accident at the station. A petition urging the Chinese to abandon the project was claimed to contain over million signatures.

2.

Members of Hong Kong's Legislative Council visited nuclear installations in third countries during the summer to acquire information on nuclear safety. They were subsequently invited to Peking. They were assured by the Chinese Government that safety and quality are given top priority in China's nuclear planning. Chinese authorities have responded positively to the panel's observations on nuclear safety.

3.

The

The main contracts for the project were signed on 23 September; French organisations are to supply the nuclear technology and expertise (including training of key staff), and GEC is to supply

Since contract signature, turbines in a contract worth some £250M.

public interest in the subject in the Hong Kong has subsided somewhat, and is now focussed on the price that Hong Kong consumers will pay for electricity from the station.

Some 70% of the power

generated at Daya Bay will go to Hong Kong; 25% of the operating company's equity is Hong Kong-owned.

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