TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 173

(a)

(b)

(c)

4

At a meeting of the Executive Committee held on 21/11/79 as to how a in Guangzhou certain proposals were made Joint Venture Company could be formed to carry out this project if it were found to be viable.

Page 20 Para. 2 of the Agenda set out various methods as to how this could be done.

At the time, in suggesting a company, neither CLP nor KEC had any real understanding of the special features

to and the very heavy responsibilities

responsibilities attached construction and operation of a nuclear power station.

the

(d)

As the feasibility study proceeded it became that the concept of commercial

a

company nuclear power station could be unsound.

obvious owning

a

(e)

(f)

a

Since

KEC both

and

nuclear CLP agreed that

power could be of benefit to station in Guangdong Province could be both parties, and both desired to

to cooperate fully in bringing this project to fruition, a new concept must be devised.

The special features which took a nuclear power station the realm of out of the scope of a company and into Government were :

(1) The

enormous

cost

estimated

at US$4 billion

(HK$20,000,000,000);

(ii) That the necessary finance should be obtained

from the World Bank by the Bank of China;

was

power

to be

station

sold

(iii) That power from the nuclear

situated in Guangdong Province across the border in Hong Kong, thus involving both the Chinese and Hong Kong Governments;

Cont'd

-

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