TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 174

(g)

ર

(h)

(i)

5

-

(iv)

(v)

(vi)

(vii)

The International regulations governing safety, environment, construction and operation of a nuclear power station and their application to this particular project;

The difference between the laws appertaining to a Hong Kong Registered Company and a Company registered in the PRC, and the effect of this difference when endeavouring to raise International loan finance. This indicated that the necessary fnance should be obtained from the World Bank by the Bank of China;

of

The need

to

for negotiate

the purchase Uranium, fuel fabrication activities, processing, and eventual storage and disposal of waste;

In the case of a nuclear power station only limited insurance cover could be obtained from commercial companies,

companies, the eventual risks could only be assumed by a government.

In the light of the above it was clear that CLP could for the not participate in providing equity finance

The financial construction of a nuclear power station.

risks involved far exceeded responsibilities and the

their capabilities and were such, that they could only be carried by a government.

This however did not mean that CLP, through a separate Hong Kong Registered Project Management Company could not work

towards harmoneously with KEC accomplishing a project which they both believed to be to their mutual interest.

closely and

The success of any

on

depended enterprise largely

i.e. KEC/PRC

complications many

could

be

simplicity. If we regarded the nuclear power station as

wholly owned Goverment Institution,

a

rather than

a company,

avoided. No provision needed be made for :

(i)

(11)

Insurance premiums;

Taxation;

(iii) Payment of dividends to outside shareholders; (iv)

Interference from outside directors; (v) Arguments over tariff differentials.

Cont'd