XN000022-1983-11-09 — Page 17

WEDNESDAY, NOVEMBER 9, 1983

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NUCLEAR POWER STATION VENTURE WITH CHINA ENDORSED

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THE GOVERNOR-IN-COUNCIL HAS DECIDED IN PRINCIPLE TO ENDORSE PARTICIPATION BY A HONG KONG PARTNER IN A JOINT-VENTURE NUCLEAR POWER STATION WITH CHINA AT DAYA BAY, THE SECRETARY FOR ECONOMIC SERVICES, THE HON PIERS JACOBS, TOLD THE LEGISLATIVE COUNCIL TODAY.

NOTING THAT THE DECISION WAS MADE YESTERDAY, MR JACOBS SAID, +AS SOON AS PRACTICABLE, STEPS SHOULD BE TAKEN WITH OTHER INTERESTED PARTIES TO FORM THE HONG KONG NUCLEAR INVESTMENT COMPANY, WHICH WILL BE THE HONG KONG PARTNER IN THE JOINT VENTURE WITH THE GUANGDONG POWER COMPANY, TO BUILD, COMMISSION AND OPERATE THE PROPOSED NUCLEAR POWER STATION AT DAYA BÀY.+

HE REPORTED THAT THE CHAIRMAN OF THE CHINA LIGHT AND POWER COMPANY HAD BEEN INFORMED OF THE DECISION AND HAD ADVISED THAT THE COMPANY WAS IN A POSITION TO RESPOND WITHOUT DELAY.

HE SAID THAT THE GOVERNMENT HAD BEEN EVALUATING THE PROJECT FOR SOME MONTHS TO ESTABLISH THAT HONG KONG'S PARTICIPATION WOULD BE IN THE INTERESTS OF THE CONSUMERS.

+THESE ISSUES CONCERN THE COMMERCIAL AND FISCAL ARRANGEMENTS THAT MUST BE AGREED PRIOR TO THE CONCLUSION OF AN OFFTAKE AGREEMENT.

+THE GOVERNMENT IS CONFIDENT THAT SATISFACTORY ARRANGEMENTS CAN BE MADE SO THAT THE PURCHASE OF NUCLEAR POWER WILL, INDEED, PROVE TO BE AN ATTRACTIVE OPTION FOR HONG KONG,+ MR JACOBS STATED.

ON ENVIRONMENTAL AND HEALTH ASPECTS OF THE PROJECT, HE TOLD THE COUNCIL THAT THE GOVERNMENT WAS CONSCIOUS OF THESE MATTERS AND A PRIME CONSIDERATION OF ALL PARTIES INVOLVED WOULD BE TO ENSURE THAT THE HIGHEST SAFETY STANDARDS WOULD BE ADOPTED FOR THE CONSTRUCTION AND OPERATION OF THIS STATION.

THE PROJECT, HE SAID, +OFFERS HONG KONG AN OPPORTUNITY TO DEMONSTRATE OUR DESIRE TO CO-OPERATE FULLY WITH CHINA IN ITS FOUR MODERNISATIONS PROGRAMME.+

+FURTHERMORE, THE DECISION TAKEN YESTERDAY IS YET ANOTHER CLEAR INDICATION OF THE GOVERNMENT'S CONFIDENCE THAT ADDITIONAL ELECTRICAL ENERGY WILL BE REQUIRED TO MEET THE FUTURE REQUIREMENTS OF A GROWING AND PROSPEROUS HONG KONG, HE SAID.

NOTING THAT THE LOCAL POWER COMPANIES WERE FREQUENTLY THE SUBJECT OF PUBLIC COMMENT, MR JACOBS SAID THAT NEVERTHELESS, WORK ING WITHIN THE FRAMEWORK OF THE SCHEMES OF CONTROL, THEY HAD SUCCEEDED IN PROVIDING HONG KONG WITH A RELIABLE SERVICE AT A REASONABLE PRICE.

WHILE NO ONE WOULD DENY THAT THE COMPANIES HAD MADE LARGE PROF ITS IN ABSOLUTE TERMS DURING RECENT YEARS, IT WAS IMPORTANT TO REMEMBER THAT A SUBSTANTIAL PROPORTION OF THE PROFITS DID NOT GO INTO THE POCKETS OF THE SHAREHOLDERS, HE STRESSED.

/+MORE THAN