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TO DESKBY 2012OOZ OVERSEAS TRADE DIVISION DTODIST 7

TELNO OTTER 210

OF 200824Z APRIL 89

AND TO DESKBY 2012OOZ DEPARTMENT OF ENERGY LONDON

INFO IMMEDIATE FCO

DTI FOR GOODMAN, EM4

FCO FOR FED.

DAYA BAY NUCLEAR POWER STATION PROJECT.

1

HKC 166

20ABEMOS

TAT

J

MR MORRISON (MINISTER OF STATE FOR ENERGY) CALLED ON STATE COUNCILLOR ZOU JIAHUA ON 20 APRIL. IN THE COURSE OF THE CONVERSATION ZOU JIAHUA RAISED THE DAYA BAY PROJECT. HE SAID THAT WHILE PROGRESS ON THE NUCLEAR ISLAND WAS PROCEEDING ON SCHEDULE, THERE WERE A NUMBER OF SPECIFIC POINTS REGARDING THE LACK OF PROGRESS ON THE CONVENTIONAL ISLAND WHICH HE WISHED TO BRING TO MR MORRISON'S ATTENTION.

2. THESE WERE :

A) THE QUALITY OF THE EQUIPMENT PROVIDED BY GEC DID NOT APPEAR TO BE VERY STRICTLY CONTROLLED. ITEMS SUPPLIED BOTH BY GEC THEMSELVES AND BY CERTAIN SUB-CONTRACTORS HAD BEEN UNSATISFACTORY.

B) DELIVERY WAS GIVING CAUSE FOR CONCERN. THERE HAD BEEN SERIOUS DELAYS (RANGING FROM THREE TO SEVEN MONTHS IN SOME CASES) IN

THE PROVISION OF ESSENTIAL ITEMS.

C) THE JOINT VENTURE CORPORATION WAS DISSATISFIED WITH THE

ARRANGEMENTS FOR THE PROVISION OF DRAWINGS:

I) DRAWINGS WERE NOT BEING SUPPLIED ON TIME AND

II) WHEN THEY WERE DELIVERED THEY CONTAINED MANY ALTERATIONS

AND FREQUENTLY NEEDED FURTHER AMENDMENTS.

3. THESE DIFFICULTIES HAD BEEN DISCUSSED BY THE JOINT VENTURE CORPORATION AND GEC BUT REMAINED UNRESOLVED. HE HOPED MR MORRISON WOULD APPRECIATE THAT DELAY IN IMPLEMENTATION OF THE PROJECT COULD CAUSE SERIOUS ECONOMIC DAMAGE TO THE JOINT VENTURE CORPORATION. ZOU JIAHUA EMPHASISED THAT THIS WAS THE FIRST NUCLEAR POWER STATION TO BE BUILT IN COLLABORATION WITH FOREIGN COMPANIES.

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