XN000022-1986-10-15 — Page 12

10

WEDNESDAY, OCTOBER 15, 1986

+IN THE LIGHT OF THE VERY POSITIVE RESPONSE OF THE CHINESE AUTHORITIES WHEN THEY DISCUSSED THE FINDINGS WITH OUR FACT-FINDING DELEGATIONS, I FEEL CONFIDENT THAT THEY ARE MAKING EVERY EFFORT TO ENSURE THAT THE CONSTRUCTION, OPERATION AND MANAGEMENT OF THE DAYA BAY PLANT WOULD BE CARRIED OUT TO THE HIGHEST POSSIBLE SAFETY STANDARDS,+ HE SAID.

MR CHEN SAID HE WAS PARTICULARLY PLEASED TO NOTE THAT THE CHINESE AUTHORITIES WERE VERY RECEPTIVE TO THE PROPOSAL THAT AN INDEPENDENT ADVISORY BODY WITH HONG KONG PARTICIPATION BE ESTABLISHED.

HE SAID SUCH A BODY, IF SET UP PROPERLY, WOULD BE BENEFICIAL TO THE SAFE OPERATION AND MANAGEMENT OF THE PLANT, AND IT WOULD ALSO ENHANCE PUBLIC CONFIDENCE IN HONG KONG.

MR CHEN SAID HE WELCOMED THE LONG-TERM PARTICIPATION OF HKNIC IN THE MANAGEMENT OF THE DAYA BAY PLANT. THIS WOULD PROVIDE SOME ASSURANCE TO HONG KONG PEOPLE THAT THE PLANT WOULD BE OPERATED AND MAINTAINED WITH THE HIGHEST STANDARD OF SAFETY IN MIND ALL THE TIME.

+SINCE HKNIC IS THE ONLY ORGANISATION IN HONG KONG WHO WOULD HAVE COMPLETE ACCESS TO DETAILS OF THE DAY-TO-DAY MANAGEMENT OF THE PLANT, I SUGGEST THAT THEY SHOULD BE ASKED FORMALLY AS AN OBJECT ON THEIR PART, TO KEEP THE HONG KONG GOVERNMENT FULLY INFORMED AT ALL TIMES OF THE SAFE OPERATION AND MANAGEMENT OF THE PLANT, AND TO PROVIDE THE PUBLIC OF HONG KONG, A PERMANENT DEMAND OF ACCESS FOR INFORMATION, HE SAID.

MR CHEN SAID IT WAS FALLACIOUS TO QUESTION THE ECONOMIC VIABILITY OF THE PROJECT.

+1 BELIEVE THERE ARE ADEQUATE PROVISIONS IN THE OFF-TAKE AGREEMENT TO GUARANTEE THAT ELECTRICITY CHARGES TO HONG KONG CONSUMERS SHOULD BE NO HIGHER THAN THE TARIFF CHARGED BY THE HONG KONG UTILITY COMPANIES FOR COAL-GENERATED ELECTRICITY FOR THE FIRST SIX YEARS AFTER THE PLANT COMES INTO COMMERCIAL OPERATION, + HE SAID.

+THIS IS A COMMITMENT FOR 13 YEARS FROM NOW, WHICH IN MY OPINION IS LONG ENOUGH AS LIKELY TO BE COUNTER-PRODUCTIVE ESPECIALLY IF THE PREDICTED COST RELATIVITY BETWEEN NUCLEAR FUEL AND FOSSIL FUEL WERE TO BE WIDELY OFF THE MARK DURING THE YEARS TO COME, HE SAID.

MR CHEN ALSO POINTED OUT THAT THE BULK OF THE CAPITAL ASSETS OF THE DAYA BAY PLANT WOULD BE OUTSIDE THE SCOPE OF THE SCHEME OF CONTROL.

HE SAID THIS WOULD MEAN THAT HONG KONG WOULD IN EFFECT HAVE THE BENEFIT OF THE SERVICE OF A 1260 MW ENERGY SOURCE (THAT IS 70 PER CENT OF 1800 MW) WITHOUT HAVING TO RAISE THE CAPITAL TO FINANCE ITS CONSTRUCTION.

/+ON THE