CONFIDENTIAL
DSR IIC
BACKGROUND AND ARGUMENT
The Case for Supply
1. The project would involve the construction of a
2 x 900 MW PWR nuclear power station in Guangdong province
adjacent to Hong Kong. It would provide much needed work
for GEC for the conventional island; NNC and Westinghouse
for the nuclear island; and for British Nuclear Fuels Ltd.
One of the Hong Kong utilities, China Light Power Co Ltd.,
would be closely involved in the management of the station.
They would also buy power from the station, thereby generatinĮ
the foreign exchange necessary for the repayment of
international loans. Total hardware and fuel costs might be
in the region of $3 billion, of which the UK would gain
the whole of the conventional island, up to 60% of the
nuclear island, associated transmission lines and some
nuclear fuel. This could be worth up to US $2 billion.
[Paragraph by FED/HKGD on the potential benefit to
[The station should
2.
UK/PRC and PRC/HK political relations]
start operating by the early 1990's and have a useful life
of about 25 years].
US Attitude
3. The proposed contract would be dependent on US
Government approval for the sale of US-designed nuclear
equipment, even though the bulk of it would be manufactured
outside the US. The US Government have already indicated
to Framatome that they would not seek to prevent the
CONFIDENTIAL
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