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FINANCIAL SECRETARY: Sir, the events at Chernobyl in April have had a profound effect on the attitude of people towards the use of nuclear power for civil purposes. Decisions that before seemed relatively clear-cut have now become far more difficult. Programmes for the development of nuclear power stations have come under scrutiny in many places. As Mr. S. L. CHEN has said, Hong Kong is not alone.

In looking at the Daya Bay project today we must ask ourselves what has changed as a result of Chernobyl. The answer is certainly not safety standards. For those who are continuing with their nuclear power programmes, safety standards will be higher than ever. What has changed is, of course, the degree of public anxiety about nuclear power.

The dilemma in Hong Kong is particularly complex for a number of reasons. First, the proposed power station at Daya Bay is not being built in Hong Kong. Second is the fact that Hong Kong Nuclear Investment Co. Ltd. and its parent. China Light & Power Co. Ltd.. have contracted to buy electricity generated at Daya Bay. And the contracts, the offtake arrangements, were entered into with the knowledge and agreement of the Government. More of this in a moment. Lastly, as Miss Maria TAM and Mr. Hilton CHEONG-LEEN have said, at the time the joint venture agreement was announced there was a clear understanding of its importance, and in most quarters support for this tangible evidence of co-operation between all the parties concerned. It augured well for the future.

Sir, this adjournment debate is undoubtedly the most appropriate method of voicing concern over this matter, which is of such great importance to the people of Hong Kong. Members of this Council have spoken with courage and sincerity. Many have acknowledged the complexity of the issues. I hope. Sir, that Members will forgive me if I do not specifically acknowledge all the important points they have made, but the hour is late, and I shall try to deal with the major general issues. In answering on behalf of the Administration I propose to give a brief account of the background and explain the Government's involvement in the project and its relationship with the parties. This I must do because I have noticed that many commentators have expressed the view that the Government should take various steps which are not in our power to take. It is important that there should be a clear understanding of what we can and cannot do. To urge that as a government we adopt a particular course of action that is not truly open to us is unproductive, to say the least. Any action that we take must. of course, be affected by the realities of the situation. At the end of the day the decision to build this power station is not one for Hong Kong.

16.7.86

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