TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 169

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material, which would probably be on site for about one year prior to commercial operation of the reactor. As this would be in the PRC, a non-Convention state, the contractor or the PRC might look to HMG for some sort of support/indemnity for the cost of such insurance and/or of damage incurred beyond an insurable level.

Accidents and Damage during operation of the Plant

5.

Tt should be the owner/operator's responsibility to insure against both nuclear and non-nuclear accidents to staff, plant and property of the power station. Evidence of adequate insurance cover for such plant and property will probably be required by the financial backers. The extent and type of insurance for staff would

be a matter for PRC law, although separate and extra insurance provisions could be made for non PRC staff. In addition, the licensing authority (in this case the PRC) should require evidence

that satisfactory third party nuclear insurance cover exists to

meet liabilities up to the limits which may be agreed between governments. (See also paragraphs 8-12).

Liability for Damage to the Plant from Severe Accidents

6. In the event of a severe nuclear accident, the owner/operator would be responsible for cleaning up the plant and rendering it no longer a danger to the public. The cost of this operation could be such that it would need to be met mainly be governments. There could be good reasons for the UK to offer some assistance: it would be politic to do so in view of our backing for the project; it would also provide useful technical experience. It would be important to ensure, however, that the UK Government's commitment was confined to technical direction only. We could respond to a request for assistance by the prompt loan of expert staff from the UK who would direct the recovery operations but use PRC labour and materials for the actual work. The clean-up period could occupy two years, with a resultant cost to the UK of about £1 million. The PRC's commitment of labour and material could however entail a financial liability many times greater.