COMMERCIAL IN CONFIDENCE ·
sen their dependence on foreign exchange. Mr Gang said that it was his ersonal opinion that China should do the civil construction but this is a matter which would need some study.
Overall, was very pleased with the reception to my paper. Nothing had been agreed but the discussions on each point were constructive and that possible pattern for the project is beginning to anerge.
The reports from the sub-committee were discussed one by one.
The papers fran the Economics Sub-Committee and the Safety Design Sub-Committee were not controversial. But the paper from the Site Selection Sub-Committee brought us to conflict because in a very recent paper the Site Sub- Committee identified the need to spend 850,000 RMB in the near future. The Chinese are determined that this work be done now, that it be done by Chinese and that it be funded jointly. Sir Lawrence Kadoorie thought KEC should fund it alone. Mr Shih became very excitable and insisted that if this work could not be done jointly then nothing could be done jointly. Sir Lawrence Kadoorie soothed the confrontation and asked for an adjournment. In an attempt to overcame the impasse I suggested that it could not be efficient to spend all that money immediately for the purposes of the feasibility study. During the adjournment Mr Lingafelter popped his head around the door (ostensibly on his way to the loo) and volunteered the news that he was trying to persuade the Chinese that not all that work was essential. We returned to the meeting with a prepared statement which Sir Lawrence Kadoorie read out. He said that he would get approval from the Board of CLP to share in the cost of any work on the site which the Joint Management Committee defined as essential for the feasibility study. That seemed to satisfy the Chinese and to make sure that things happened quickly Bill Stones offered to have the necessary Management Committee meeting the following weekend. Poor chap!
After that excitement everything else was an anti-climax until we reached any other business and under this heading KEC reported on the discussions they had had with reactor vendors since the Last Executive Committee. reports were very instructive.
These
They had received a delegation from Framatome who had given a presentation to the Chinese about their experience and about their organisation. In reply the Chinese made five points. First, they would not accept any reactor which involved the application of nuclear safeguards. Second, any reactor would have to be economically and technically competitive with other suppliers around the world. Third, the supply of fuel in the long term must be guaranteed. Fourth, there was no relation between the nuclear plants of Guandong and those of Shendong Province, and fifth, they would like to have a price indication from Framatome for the supply of the nuclear island. The French apparently did not respond to these requests for a price indication; instead they drew attention to the fact that they were accom- panied by a representative of the Alstrom Company which manufacture turbines and other electrical equipment and that they, the French, were interested in providing the conventional plant as well as the nuclear island. The Chinese replied that they would therefore like a price indication of the conventional work and if those indications were attractive and competitive they would be happy to make a recommendation to the joint project.
The Westinghouse presentation lasted for 11⁄2 days. The same points were made to them. Westinghouse did give a price indication for the nuclear island and that will be made available to us later on. Concerning safeguards, Westinghouse
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