BARABP

CONFIDENTIAL

VISIT TO HONG KONG BY LORD GLENARTHUR, 16-19 SEPTEMBER

BACKGROUND BRIEF H: THE DAYA BAY NUCLEAR POWER PLANT

1.

After many years of planning, the main contracts were signed in September 1986 for a nuclear power station to be constructed at Daya Bay on the coast of China's Guangdong province, some 50km north east of Hong Kong. The plant is a joint venture between the Guangdong Nuclear Investment Company and the Hong Kong Nuclear Investment Company. The main contractor to supply the plant is

French: GEC will supply the turbines and generator. The foundation

stone was laid on 8 August this year, and the plant will become fully operational in 1993. The plant is 25% Hong Kong owned and some 70% of the power generated will go to Hong Kong.

2.

Since events at Chernobyl in April 1986, there has been great concern in Hong Kong about the risks to which the territory would be exposed in the event of an accident at Daya Bay. In the summer of last year, a coalition of anti-nuclear groups in Hong Kong collected over a million signatures against the project and presented them in August to the Chinese government in Peking. On their part, the Chinese authorities confirmed that the Daya Bay plant would be built

and assured Hong Kong that it would be operated to the highest possible standards.

3.

In early September 1986, members of Hong Kong's Legislative Council (LegCo) published a report on their visits to the International Atomic Energy Agency and several countries with nuclear power programmes, making observations on safety but leaving open for debate the questions of the desirability of the project for Hong Kong. They also visited Peking for discussions with senior

Chinese officials before contracts for the project were signed. The

Chinese have promised to set up an independent advisory body to

consider safety and management aspects of the Daya Bay plant. It is

still not clear whether the Chinese will agree to Hong Kong's

request to participate in any such body, although recent remarks by senior Chinese officials speaking approvingly of a joint watchdog body have been quoted in the Hong Kong press.

CONFIDENTIAL

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