CONFIDENTIAL
GRS 445
CONFIDENTIAL
DESKBY 23010OZ
FM F.C.O. 221639Z JAN 80
TO IMMEDIATE BTC HONG KONG
TELEGRAM NUMBER 9 OF 22 JANUARY
FOR MARCH FROM CLIFT
GUANGDONG NUCLEAR PROJECT
:
1. AT OUR MEETING ON 17 JANUARY, YOU ASKED TO SEE THE REVISED
SECTION OF THE DOI PAPER DISCUSSED ON 16 JANUARY DEALING WITH
THE HONG KONG GOVERNMENT INTEREST IN THIS PROJECT, FOR DISCUSSION
WITH THE PA. FOLLOWING IS TEXT:
QUOTE HONG KONG IS ALREADY TO SOME EXTENT RELIANT ON CHINA FOR A PROPORTION OF ITS NEEDS, NOTABLY FOOD AND WATER. A JOINT VENTURE BETWEEN ORGANISATIONS IN HONG KONG AND GUANGDONG ON THE SUPPLY OF ELECTRICITY WOULD THEREFORE NOT BE A NOVEL DEPARTURE. IT WOULD INDEED FIT INTO THE PATTERN OF INCREASING COOPERATION BETWEEN HONG KONG AND THE SOUTHERN CHINA PROVINCES. SUCH COOPERATION IS IMPORTANT TO CHINA IN THE CONTEXT OF THEIR MODERNISATION PROGRAMME. IT IS ALSO WELCOME FROM OUR POINT OF VIEW PARTICULARLY WHEN, AS IN THIS CASE, IT INVOLVES A PROJECT WHOSE BENEFITS WILL NOT BEGIN TO BE FELT UNTIL WELL INTO THE FUTURE, SINCE IT INCREASES CHINESE INTEREST IN MAINTAINING THE STATUS QUO IN HONG KONG. IT THUS ALSO HELPS TO BOLSTER BUSINESS CONFIDENCE IN THE TERRITORY AND TO COUNTER ANY UNCERTAINTY ABOUT HONG KONG'S FUTURE THAT MAY BE CAUSED BY THE FACT THAT THE LEASE ON THE NEW TERRITORIES IS THEORETICALLY DJE TO END IN 1997.
QUOTE THE HONG KONG GOVERNMENT ARE THUS SYMPATHETIC TO THE CONCEPT OF A NUCLEAR POWER STATION ESTABLISHED IN CHINA ON A JOINT VENTURE BASIS SUPPLYING ELECTRICITY TO THE TERRITORY. THEY ARE HOWEVER, ANXIOUS TO AVOID A SITUATION IN WHICH DISCUSSION ON THE PROJECT COULD END UP BY STRAINING RATHER THAN IMPROVING POLITICAL RELATIONS AND SEE A POTENTIAL PITFALL IN THE NON- PROLIFERATION ASPECTS. IF MINISTERS ARE HOWEVER, CONTENT FOR NEGOTIATIONS TO PROCEED ON THE BASIS SET OUT IN THE PRECEDING SECTION THEN THAT AREA OF CONCERN SHOULD BE REMOVED.
CONFIDENTIAL
/QUOTE THE
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