TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 178

14.

9

In reply to Mr. Chen's query,

Mr. Stones illustrated CLP's ideas on the new method of joint venture :

(a)

(b)

}

The Nuclear Power Station would be owned and operated by a separate company registered in China formed by KEC and a New Company in Hong Kong.

The New Company in Hong Kong would be formed by CLP and external interests, which would be registered in Hong Kong.

(c)

(d)

Loans would be obtained from external banks under the Bank of China guarantee and CLP guarantee by purchase of electricity from the nuclear power station.

CLP would purchase electricity from the nuclear power station

that So

foreign currency was obtained for repayment of loans.

Mr. Stones explained that the reason for establishing the New Company in Hong Kong was to limit CLP's liability. CLP, unlike KEC, did not have a Government behind them.

15.

Mr.

Mr. Chen advised that he had met Dr. D. Wilson and Sir Philip Haden-cave who knew about the project. He asked whether or not CLP had support from the Hong Kong and U.K. Governments. Stones stated that CLP did keep the Hong Kong Government informed and that the U.K. Government also knew about the project through the Hong Kong Government and presumably through CLF's

from use of expertise

U.K. He added that CL.P received encouragements from the Hong Kong Government and felt that if CLP approached the U.K. Government, support would be given.

had

16.

Mr. Chen suggested that should CLP consider the 40% investment too large for CLP, CLP could share the investment with HEC in the proportion : KEC 60%, CLP 20% and HEC 20%. Mr. Stones replied that CLP would consider this.

- Cont'd