TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 171

- 2.

(b)

Items associated with Management of Joint Company

(i)

Share of Investment

(ii)

Contract Period

(iii) Method of Management

(c)

Contracting Method.

METHOD OF JOINT VENTURE

3.

4.

Mr. Stones enquired KEC's ideas on CLP's participation in the joint venture and the method of investment preferred by KEC. Mr. Chen replied that their ideas were :

(a)

Investment (in form of equity) by all parties KEC, 40% by CLP (and possibly HEC).

60% by

(b)

Joint Company

representation

equity shares.

(c)

to be controlled by

the a Board

of which

in would be

accordance with Chairman of the Board to be appointed by KEC and Deputy Chairman by CLP (or other investing parties).

managerial

The Joint Company to be managed and operated by competent

and technical staff (including General Manager, Chief

recruited Chief Engineer etc.) CLP, KEC or outside the Companies.

from

Mr. Stones enquired what CLP financial involvement KEC would like to have assuming that CLP would purchase power from the nuclear power station. Mr. Chen stated that during the initial discussions between KEC and CLP, three methods of co-operation were discussed :

(a)

(b)

(c)

KEC to construct and manage nuclear power station and supply electricity to CLP;

KEC and CLP to construct

and manage nuclear power station jointly and share the electricity generated;

CLP to construct and manage nuclear power station and supply electricity to KEC.

- Cont'd