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CONFIDENTIAL
point of concern was the actual operation of the station, which
could have a significant bearing upon the likelihood of a disaster.
Althouth CLP - in practice, though, CEGB and EDF - would be running
the station for at least the first 5 years, there could be substantial
pressure brought to bear on any management especially given need to
generate revenue to repay the substantial loans. (It was considered
that the participation of the Nuclear Installations Inspectorate
would not imply any liability by HMG unless the NII were negligent).
It was agreed thet the Department of Energy would, in collaboration
with JNU, produce a paper on disaster liabilities.
The meeting then went on to discuss the possible credit terms that
might be offered. ECGD sais that although there was no Concensus
on nuclear power stations a Standstill agreement existed which
meant that ECGD could not exceed its terms current in 1975. That
limited it to 12 years credit except in a matching situation. There
was also a move to bring nuclear power stations into line with fossil
fired.stations to give a credit period of 10 years, covering 85% of
the UK content. ECGD would also have to look most carefully at any
capitalisation of interest during construction, and also the inclusion
of local costs. Mr Manzie requested that Mr Brown should convene a
meeting with ECGD and the IDU to examine the computer printout
figures provided by CLP.
The meeting generally expressed concern about Dr Marshall's ideas
of a NNC/Bechtel/Westinghouse consortium to build the nuclear island.
The Department of Energy considered that NNC would and should be fully
engaged in the UK nuclear programme. Despite this, though, Mr Potter
No comments yet.
Private notes are available after approval.