TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 88

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1. DISASTER LIABILITY

2. THIRD PARTY RISKS

3. AVAILABILITY

4. CONSTRUCTION DELAY.

12. DISASTER LIABILITY WAS THE COST OF CLEANING UP THE PLANT IF THEY HAD A BAD ACCIDENT LIKE THREE MILE ISLAND. I ARGUED THAT THERE WAS NO NECESSITY TO MAKE ALLOWANCE FOR THAT. IF THERE WAS A SERIOUS

ACCIDENT ON THE PLANT THEN, GIVEN SOME FORM OF UK GOVERNMENT INVOLVEMENT, WE WOULD BE OBLIGED TO PROVIDE TECHNICAL HELP TO CLEAN THE PLANT UP. WE WOULD HAVE TO DO THAT WHETHER WE WERE PAID FOR IT OR NOT, AND IF INDEED THERE WAS A SERIOUS ACCIDENT WE PROBABLY WOULD NOT BE PAID FOR DOING THE WORK. IN EFFECT, BY BEING

ASSOCIATED WITH THE PROJECT THE UK WAS ACCEPTING THE RESPONSIBILITY TO GIVE TECHNICAL ASSISTANCE IF SOMETHING SERIOUS HAPPENED.

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13. CN THIRD PARTY RISKS I ARGUED THIS WAS NOT IMPORTANT GIVEN THE REMOTE POSITION OF THE NUCLEAR STATION FROM HONG KONG, AS IT IS NOW PLANNED TO BE, AND GIVEN THAT WE WOULD TREAT ANY CLAIMS FROM MEMBERS OF THE POPULATION OR FROM THE STAFF OF THE POWER STATION BY THE USUAL METHOD OF CONSULTATION WITH THE MEDICAL RESEARCH COUNCIL AND THE NATIONAL RADIOLOGICAL PROTECTION BOARD. THIS THEREFORE SEEMED UNIMPORTANT TO ME PROVIDED WE COULD AVOID ''CLASS ACTION'' CASES, SUCH AS THOSE GOT IN AMERICA.

14. IT MAY BE NECESSARY TO TAKE INSURANCE ON THE AVAILABILITY OF THE PLANT. THAT, IT SEEMED TO ME, WAS A COMMERCIAL MATTER.

15. THE MAIN COMMERCIAL RISK TO THE PROJECT WAS ONE OF CONSTRUCTION

DELAY. THAT WAS NOT SOMETHING THAT ONE WOULD TAKE INSURANCE FOR. BILL STONES FELT THAT ALL THESE POINTS COULD BE RESOLVED BY DISCUSSION AT MANAGEMENT LEVEL, AND IT WOULD BE COUNTER-PRODUCTIVE

TO RAISE THEM AT THE EXECUTIVE COMMITTEE.

16. IT WAS AGREED THAT EQUIPMENT AND SERVICES SHOULD BE SUPPLIED AS MUCH AS POSSIBLE FROM CHINA OR FROM THE UK, SUBJECT TO A CHECK THAT THE PRICES AND PERFORMANCE OF THE EQUIPMENT ARE SATISFACTORY.

IT WAS AGREED THAT THE LAND AND CIVIL WORKS WOULD BE SUPPLIED BY CHINA, THE PWR NUCLEAR ISLAND BY THE USA, FRANCE OR GERMANY, THE BALANCE OF GENERATING PLANT BY THE UK PREFERENTIALLY, OR BY OTHER COUNTRIES IF THE UK DID NOT MAKE GOOD PROPOSALS, THE TRANSMISSION EQUIPMENT SHOULD BE PROVIDED FROM THE UK AND FROM CHINA. AFTER A BRIEF DISCUSSION IT WAS AGREED TO ADD THE ITEM **NUCLEAR FUEL SERVICES'' TO THE LIST, AND SUPPLY THOSE FROM THE UK. THE CHINESE THEN ADDED THAT THEY WOULD LIKE THE FUEL SERVICE TO COME INITIALLY FROM THE UK, BUT THEY WOULD LIKE TO PLAN THAT EVENTUALLY CHINA WOULD PROVIDE SOME HERSELF. IN CHOOSING THE SUPPLIERS OF EQUIPMENT AND SERVICES THE CHINESE WOULD WANT TO GIVE ATTENTION TO FIVE IMPORTANT POINTS:-

1. THE EQUIPMENT SHOULD BE TECHNICALLY ADVANCED, MODERN AND

SAFE,

2. IT MUST NOT BE SUBJECT TO SAFEGUARDS INSPECTION,

3. IT MUST BE SUPPLIED AT A COMPETITIVE PRICE,

4. THERE MUST BE A GUARANTEE OF A LONG TERM SUPPLY OF FUEL,

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CONFIDENTAL

15. THE

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