CONFIDENTIAL
gge not well he was and when we make a shadow. We demon h
station to be party financed by the sale of electricity to Hong Kong. This in
turn would require the Government of Hong Kong to be able to assure itself as
to the safety of the reactor, the continuity of supply, and costs of electricity
to be purchased, before allowing CLP to enter into an off-take agreement.
However our position is less strong than it appears. The decisions to proceed
and on the choice of reactor will be taken by the PRC. As CLP have prepared
the feasibility study jointly with GPC it would be difficult for them to reject
a competitor's commercially sound and technically competent package which
excluded UK participation. Equally the Government of Hong Kong would find it
difficult to object to CLP purchasing power from such a source providing they
were satisfied as to the safety of the station as it might affect Hong Kong
and its reliability as a source of electricity supply.
7
Thus the Hong Kong connection, while helpful, does not of itself guarantee
UK participation. Equally GEC have limited relevant technical experience from
which to offer high speed 900 MW turbine generators, but do have considerable
experience of low speed 900 MW sets in Korea. Neither does the UK have any
experience in building or operating complete PWR nuclear stations. Both
Framatome and Westinghouse have the ability to offer complete stations based
on proven designs. Following a visit of President Giscard d'Estaing, the French
appeared to have established a favoured position in Peking having secured an
agreement in principle that France would be the preferred supplier of China's
first nuclear station. However with the passing of time the strength of this
commitment to the French has become less certain.
8: Despite these drawbacks there is still a good prospect that the UK can
obtain a central role in this project. The French and Americans probably over-
value our influence in Hong Kong. Secondly the UK does have a considerable