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CONFIDENTIAL

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TO IMMEDIATE FCO

TELNO 2212

OF 21023OZ NOVEMBER 86

INFO IMMEDIATE HONG KONG

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YOUR TELNO 2604 TO HONG KONG AND HONG KONG TELNO 3859 TO FC27 NOV 1936

DAYA BAY: THIRD PARTY LIABILITY

DESK OPAK Ks

NDEX *.

1. I AGREE THAT WE SHOULD RAISE THIS SOON WITH THE CHINESE AND AT A SUITABLY SENIOR LEVEL, EITHER WITH ZHOU PING, OR MEL ZHAORONG.

2. WYE'S LETTER OF 21 MAY TO ASHTON, FED (NOT COPIED TO HONG KONG:

COPY FOLLOWS BY BAG) REPORTED ON STATE COUNCIL BULLETIN NO 497.

THIS CONTAINED THE TEXT OF THE LETTER OF 29 MARCH REFERRED TO IN

PARA 3 OF SECOND TUR, AND WHICH WAS RELEASED AS DOCUMENT NO 44 IN THE STATE COUNCIL SERIES. WE DO NOT YET HAVE A FORMAL TRANSLATION

OF THIS DOCUMENT. HOWEVER, IT IS OUR UNDERSTANDING THAT IT PROVIDES

FOR COMPENSATION TO THIRD PARTIES IN THE EVENT OF A NUCLEAR ACCIDENT

WITHIN PRC TERRITORY.

3. WE UNDERSTAND ALSO FROM THE FRENCH EMBASSY HERE THAT THE

CONTRACTS ON DAYA BAY (INCLUDING GEC'S, THEY THINK) CONTAINED

CLAUSES REFERRING SPECIFICALLY TO THIRD PARTY LIABILITY. THE FRENCH

NUCLEAR COUNSELLOR SAYS THAT THE CONTRACTORS LAST YEAR PRODUCED A

PAPER ON THIRD-PARTY LIABILITY FOR THE CHINEE AND THAT IN FACT

६५ DOCUMENT NO RR WAS BASED LARGELY ON THAT PAPER. UNFORTUNTELY, WE DO

NOT HAVE COPIES OF EITHER THE CONTRACTS OR THE DOCUMENT.

4. STATE COUNCIL DOCUMENTS CAN HAVE THE FORCE OF LAW, UNDER ARTICLE 89 OF THE CONSTITUTION. HOWEVER, IT IS NOT ENTIRELY CLEAR WHAT IS

THE PRECISE STATUS OF THIS DOCUMENT, AND IT WOULD BE PROPER FOR US TO SEEK CLARIFICATION, NOT ONLY OF THIS AND WHETHER THE REGULATIONS

THERE IN APPLY TO HONG KONG, BUT ALSO OF THE EXTEND OF COVERAGE PROVIDED BY THE INSURANCE PROVISION. I AGREE THEREFORE THAT I

SHOULD SEEK A CALL ON ZHOU PING AND SPEAK ALONG THE LINES SET OUT IN

-1

Confidential

| PARA

Ken

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