TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 124

4. The terms of reference of the Executive Committee were

5.

6.

1.

to confirm (or otherwise) the following :

i.

ii.

that the nuclear power station was required;

that the nuclear power station was viable in terms of plant and fuel availability, engineering feasibility, safety and finance;

iii. that the project would be beneficial to both

parties.

It was agreed that if investigation showed that the

project was viable, the method which would benefit bot)

parties the best would be to form a company to be join

owned and operated by KEC and CLP.

As work on the Feasibility Study proceeded, it became

obvious to me that in view of the magnitude of the project it would be very much in the KEC's interest to endeavour to obtain loan capital from the World Bank or some such institution rather than to form a company in which a foreign shareholder would invest equity capital.

With this in view, I prepared and submitted the followi memorandum, dated 18th June, 1980, to my colleagues on the Board, a copy of which I shall now read to you.

(Attachment Three)