COMMERCIAL IN CONFIDENCE
Dr Marshall said that the Chinese had requested that he present a nical summary report to the next Executive Committee meeting in Canton on 27 May. Because of the large work load brought back by Mr Collier and Mr Plail the timescales for such a report were too short. Sir Lawrence and Dr Marshall agreed that Dr Marshall should prepare a short note which he could give to Mr Stones, during the latters visit to the UK next week, which would set out a number of key questions which the Chinese would need to answer and which would influence the work of the Sub-Committee. These would include questions on regulatory aspects and site selection. Dr Marshall also agreed to give a progress report to the Executive Committee.
Sir Lawrence said that at the Executive Committee meeting he would also like to take discussion on financing and training programmes for the Chinese.
Dr. Marshall said that from his discussions in Canton it was clear that the Chinese wished for as much indigenous manufacture as possible to reduce the levels of foreign exchange payments. For this reason they were unlikely to favour a turn-key package from the Germans and there was a suggestion that the French had already offered a turn-key package. It was therefore clear that any eventual package from the UK should contain as much indigenous manufacture as possible. The Chinese had also shown some preference for more than one turbine for the nuclear station to reduce the possibility of supply failure to Hong Kong and the subsequent loss of foreign exchange. Dr Marshall said that a system with more than one turbine could well favour the UK as we had similar experience from our Magnox programme.
Sir Lawrence said that a pumped storage scheme (similar to Dinorwic) had attraction for security of supply and was being considered as part of the total package. Mr Benjamin agreed to discuss this aspect with Mr Stones during his forthcoming visit and to suggest that Mr Stones visits the potential location in China to make an initial assessment.
Dr Marshall suggested that the Chinese might be invited, in due course, to visit the pumped storage schemes at Dinorwic and Trawsfynydd.
During discussions on the training necessary for the operation of a nuclear station, and the provision of skilled manpower in the interim, Sir Lawrence Kadoorie asked whether a simulator could be useful, and Dr Marshall agreed that it could. CLP would have to operate the station to begin with, but did not have sufficient resources within its own company. Esso Eastern were also concerned by this aspect because of their potential involvement with CLP on the "B" station. Sir Lawrence Kadoorie said that he would be looking to the CEGB for assistance in providing the necessary manpower. Dr Marshall confirmed that training could be provided within the UK through CEGB, but would be dependant upon Government approval and an undertaking from somebody to pay for CEGB's services.
During discussion on the implications of raising international finance commercially, Dr Marshall touched upon the scale of the risk involved; the company operating Three Mile Island was now technically bankrupt and there was a history of late commissioning of nuclear plants. It would be unlikely that commercial sources of finance could be found without a Government guarantee against such contingencies.
J S Hutchins
Overseas Project Group
Atomif Energy Technical Unit
UKAEA Harwell
27 May 1990
JSH/svh
Page 30Page 31
Distribution
Those present
Mr. W.F. Stones
Mr. R.Alston
Mr. J.G. Collier
Mr. J.A. Ward
Mrs. M.A. Gardiner Mrs. C.M. Mills
t
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