TNAG-0941-FCO40-1160-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1980 — Page 86

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manufacturing experience.

CONFIDENTIAL

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A third country partner will therefore

almost certainly be necessary. There can therefore be no certainty

that the UK will secure orders for even part of the project since we

shall be dependent on satisfactory collaboration with a PWR supplier

country. CLP have taken the helpful line with KEC that they have

good experience of British equipment and hope that KEC will buy

British; KEC have indicated that if the price is competitive they

are inclined to do so.

10. A joint Executive Committee of KEC and CLP (with Dr Marshall as

technical adviser to CLP) was established in the spring. This, with

sub-committees, is currently engaged on a feasibility study (to cover

eg safety, siting, financing, supply etc), which KEC wish to see

completed for submission to Peking by the end of October. At the

next Executive Committee meeting on 22 October, CLP will be expected

to make a statement about financing. CLP themselves are now unwilling

to take up any equity in the proposed joint company to run the project.

Much of the finance required could be raised from private sources in

Hong Kong, but KEC have hinted strongly that equity participation by

HMG and the Hong Kong Government is desirable. We do not know what

is envisaged and will wish to get a clearer idea before putting the

proposal to Ministers.

CONFIDENTIAL