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GRS 650
CONFIDENTIAL
FM HONG KONG
TO ROUTINE FCO
TELNO 3859
OF 18064OZ NOVEMBER 86
INFO ROUTINE PEKING
Confidential
Rp 14 and
Zuile
HKK 166/1
RECEIVED IN REGA
19 NOV 1986
Aw-Batan
YOUR TELNO 2604 AND PEKING TELNO 2084 : DAYA BAY : THIRD PARTY
NUCLEAR LIABILITY
DrBK OFFICER
INDEX
PA
REGISTRY
Action Taken
732
se coûnder
Cart yoway
Ca 18h
WE AGREE WITH PEKING THAT CARE WILL BE NEEDED IN RAISING THIS ISSUE
WITH THE CHINESE. BUT OUR CONCERN SHOULD NOT COME AS A SURPRISE
TO THEM. AS WE ARE NOT CLEAR ON THE DETAILED GROUNDWORK PEKING
WOULD LIKE US TO INITIATE, OUR PREFERENCE IS TO PURSUE YOUR PROPOSAL
THAT THE INITIAL APPROACH SHOULD BE MADE BY HMA PEKING ALONG THE
LINES SUGGESTED IN TELNO 2604.
2. NOTWITHSTANDING THE FACT THAT THE LIKELIHOOD OF A SERIOUS ACCIDENT AT DAYA BAY WILL PROBABLY TURN OUT TO BE EXTREMELY REMOTE, AND THAT THE PARTIES INVOLVED WILL MAKE EVERY EFFORT TO MINIMISE
THE RISK, THE CHINESE ALREADY FULLY ACCEPT THAT NO ABSOLUTE
GUARANTEE CAN BE GIVEN THAT A NUCLEAR ACCIDENT WILL NOT TAKE
PLACE. JI PENGFEI MADE THIS POINT TO THE GOVERNOR ON 1 SEPTEMBER
1986 (PARAGRAPH 6A OF TELNO 1574 FROM PEKING REFERS). IN THESE
CIRCUMSTANCES OUR APPROACH TO THEM SHOULD BE SEEN AS A
RESPONSIBLE ACT ON OUR PART TO ENSURE THAT THE INTERESTS OF THE
HONG KONG PEOPLE, WHO AFTER ALL WILL BE BUYING THE BULK OF THE
POWER FROM THE STATION OVER THE FIRST 20 YEARS, ARE BEING PROPERLY
LOOKED AFTER.
3. WHILE WE ARE UNAWARE OF ANY CHINESE DOMESTIC LEGISLATION, GUIDANCE ON HOW THE QUESTION OF THIRD PARTY NUCLEAR LIBAILITY SHOULD
BE HANDLED WITHIN THE PRC WAS GIVEN TO THE MINISTRY OF NUCLEAR
INDUSTRY BY THE STATE COUNCIL IN A LETTER ISSUED ON 29 MARCH 1986.
A COPY OF THE LETTER AND ITS TRANSLATION IS BEING SENT TO YOU AND
PEKING BY BAG. IT WAS GIVEN TO US IN CONFIDENCE BY HKNIC.
4. IN ESSENCE, THE LETTER OF THE STATE COUNCIL PLACES ABSOLUTE
LIABILITY FOR ANY NUCLEAR DAMAGE ON THE OPERATOR OF THE POWER
STATION. IT ALSO LIMITS THE OPERATOR'S LIABILITY TO A MAXIMUM
AMOUNT OF RMB EIGHTEEN MILLION WITH THE STATE PROVIDING ADDITIONAL
FINANCIAL COMPENSATION UP TO A MAXIMUM AMOUNT OF RMB THREE HUNDRED
MILLION. IT IS NOT CLEAR WHETHER THE CHINESE HAVE ANY PLANS TO
INTRODUCE LEGISLATION TO EMOBDY THE PRINCIPLES SET OUT IN THE
Confidential
| LETTER.