TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 192

CONFIDENTIAL

the Gu gdong project is essentially a joint venture, and

the PRC is likely to insist on shared liability as part of

the price for preferring supplies from the UK. If this

price has to be paid we should aim to get the PRC to accept:

(a) that the operating company should have strict

(b)

liability up to an agreed limit: British contractors

should not be liable;

that the PRC Government should accept all residual

liability for damage within the PRC. In return, no

claim would lie against the PRC Government in respect

of damage in Hong Kong.

These arrangements should be set out in a bilateral agree-

ment between the PRC and the UK.

CONRI INVENUTTAT