he UK, Hong Kong and the People's Republic of China (PRC) in a period when
re-assurance over the future of Hong Kong will be important given the expiry in
1997 of the lease on the New Territories. While the UK can supply the bulk of
the necessary plant and equipment, we cannot supply the heart of the station
the pressurised water reactor and the remainder of the nuclear steam supply
system representing about 15% of the total project cost. A partnership with
Framatome (French) or Westinghouse (American) are the front
a PWR manufacturer
runners would therefore be necessary.
G
GEC are the favoured supplier for the
conventional island; they have made it clear that technically they would be
able to co-operate with either the French or Americans.
4
The French position on non-proliferation is similar to our own and while
there are some doubts about the US Government's attitude to the sale of nuclear
equipment direct from the United States, Westinghouse would be able to supply
from one of their licencees outside the USA. Both Framatome and Westinghouse
have indicated their willingness to work with the UK in this way.
The UK Position
5 The UK provided technical support to CLP from Dr Walter Marshall (Chairman
of UKAEA) and partly as a result of his efforts the UK has the possibility of
gaining a major share of the project. CLP favour a substantial UK involvement
in the project. Both the French and the American companies currently appear to
perceive the UK as being the front runners to win a major share. The Government
of Hong Kong, naturally, supports the UK's interest as UK participation would be
arguably the best way to meet its requirement for safety and continuity of supply
of electricity.
6
The UK's negotiating position is based upon the need for the nuclear power
CONFIDENTIAL
ブル