POWER STATION OF TWO 900 MW(E) PWR MACHINES INITIALLY. NPS WILL BE OWNED JOINTLY BY 60% KEC AND 40% HONG KONG NUCLEAR INVESTMENT COMPANY (HKNIC). HKNIC WILL BE A COMPANY REGISTERED IN HONG KONG AND JOINTLY OWNED BY THE UK AND LOCAL INTERESTS. THE CHINESE
EXPLICITLY ASKED THAT THE FOLLOWING WORDS BE ADDED:
''WITH INVESTMENT BY THE HONG KONG GOVERNMENT AND THE UK GOVERNMENT IT WOULD BE EVEN BETTER"". THIS ARRANGEMENT BETWEEN KEC/HKNIC AND NPS SHOULD COVER A PERIOD OF 20 YEARS (POSSIBLE 25 YEARS), IE A PERIOD OF TIME UP TO 2008 OR 2013.
7. IT WAS PROPOSED THAT THE FINANCE FOR NPS SHOULD BE MADE OF 6% KEC, 4% HKNIC, 20% LOCAL LOANS AND 70% FOREIGN BANK LOANS. THE CHINESE SAID THIS WOULD BE ACCEPTABLE BUT THEY HAD SOME PREFERENCE FOR INCREASING THE EQUITY PARTICIPATION TO 15 OR EVEN 20%, DIVIDED BETWEEN KEC AND HKNIC IN SOME SUITABLE RATIO. THE FOREIGN
BANK LOANS WOULD BE GUARANTEED BY THE BANK OF CHINA AND THE ECGD IN THE RATIO OF 60% BANK OF CHINA/40% ECGD. THERE WILL BE
AN ELECTRICITY PURCHASING AGREEMENT BETWEEN NPS AND CLP COVERING
25 YEARS.
8. ON DETAILED QUESTIONS OF PROFIT CALCULATION AND TAXATION, THERE WAS SOME DISAGREEMENT. THIS WAS REMITTED BACK TO THE MANAGEMENT COMMITTEE. ON THE MANAGEMENT OF THE COMPANY IT WAS AGREED THAT THE GENERAL MANAGER AND THE CHIEF ENGINEER SHOULD BE NOMINATED BY CLP. THE CHINESE ASKED THAT THEIR DEPUTIES BE NOMINATED
BY KEC AND TRAINED TO TAKE OVER IN COURSE OF TIME.
9. THE CHINESE SAID THEY PAID GREAT ATTENTION TO SAFETY STANDARDS. THEY BASED THEIR THINKING ON THE IAEA REGULATIONS, THE EXPERIENCE OF PWR VENDORS, AND THE UK POSITION AS SET OUT BY THE HEALTH AND SAFETY EXECUTIVE. THEY PROPOSED THAT ALL THOSE SHOULD BE COMBINED TOGETHER TO CONSIDER THE SAFETY OF THE JOINT POWER STATION, AND THAT THE SAFETY BE ASSESSED BOTH BY USING THE DESIGN BASIS ACCIDENT
METHOD, AND BY USING PROBABILISTIC FAULT TREE ANALYSIS. THEY RECOMMENDED THAT THE DETAILS OF THIS BE DELEGATED TO THE EQUIPMENT
SUB-COMMITTEE. I WAS ASKED TO REPLY TO THIS COMMENT AND I SAID THAT I WAS SATISFIED THAT WE WOULD BE ABLE TO JUSTIFY TO THE HONG KONG GOVERNMENT AND TO THE HONG KONG PEOPLE THAT THIS REACTOR WAS AS
SAFE AS ANY OPERATED IN THE UK.
10. IT WAS AGREED THAT THE UK, IF REQUIRED, WILL HELP THE PEOPLE'S REPUBLIC OF CHINA TO SET UP CHINESE SAFETY STANDARDS.
11. IN THE PAPER WRITTEN BY STONES THERE OCCURS THE FOLLOWING
PHRASE::
''THE PRC AND THE BRITISH GOVERNMENT WILL UNDERTAKE INSURANCE
OF PLANT, THIRD PARTY RISKS AND DISASTER LIABILITY”’.
BY PRE-ARRANGEMENT WITH BILL STONES I DID NOT COMMENT UPON THIS
PHRASE IN THE MEETING, BUT I DID DISCUSS IT IN ADVANCE, TO MAKE THE FOLLOWING POINTS. THERE WERE FOUR SEPARATE POINTS TO BE
CONSIDERED, WHICH WERE, IN INCREASING ORDER OF IMPORTANCE:-
11. DISASTER
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