TNAG-0941-FCO40-1160-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1980 — Page 89

ある

1

(a) IMG would meet the cost of technical direction of the cleaning up operation;

*

(b) the company operating the station should have strict liability in respect of third party damage up to an agreed limit;

(c) the PRC Government should accept all residual liability for damage within the IRC: responsibility for Hong Kong should rest with the Hong Kong/UK Governments. (The latter would require legislation)".

Non-Proliferation

Ministers have agreed the following approach:

(a) No requirement for IAEA safeguards (since the PRC is a luclear Weapon Station);

(b) But we should seek assurances of physical protection, no diversion from peaceful use, and no retransfer without agreement.

Non-proliferation conditions may prove to be a key factor in establishing Chinese preference between the US and France. The French have obtained President Carter's approval to their supplying on similar conditions a French built PWR based on a Westinghouse design. Put the US position on direct supply to the FRC would be different. It ceems likely that even if IAEA safeguards were not required bilateral US cafeguards would be`.

Safety Issues

The Governor of Hong Kong wishes to be assured that the station will be constructed and operated in accordance with UK safety standards. FC appears ready to pay close attention to these and has suggested informally that the UK should help China establish a safety authority. The II would be the most appropriate authority to do this and to offer advice to the Governor but its resources are fully committed to the UK nuclear programıne. Consideration must therefore be given to the means by which the UK can meet these needs.

HEC Particivation

The NC could also offer valuable expertise to either customer or contractor. Involvement of NC may be seen by the Chinese as a desirable expression of HG support. The extent of the NC role will however be constrained by commitments to the UK nuclear programme and the choice of nuclear reactor partner.

CICE Role

Experienced operating staff from the CPGB and the nuclear supplying country will be needed during the initial operation of the station to make good the lack of CLP and KX expertise. Possible calls on these resources will need to be clarified.

•

3+