TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 197

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authorities, who have already indicated that they will look They

for HMG involvement in this may be expected to argue that

since the constraints and operation of the nuclear power

station will be a joint venture with PRC, Hong Kong and UK

interests and with Hong Kong sharing in the station manage-

ment and product, the Hong Kong and UK Governments should

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stand behind 'their' share of the operating company and

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theird party

accept proportionate liability. Against this it may be

argued that, while Western interests will be involved in the

running of the station, the operating company will be

incorporated in the PRC and will ultimately be under PRC

control. Moreover, responsibility for the maintenance of

safety standards will rest with the PRC authorities.

4. A decision on this must be essentially one of tactics

but if it appeared that refusal to accept some third party

liability was likely to prejudice the project it may be

necessary to reach some compromise. One possible approach

might be to propose that while prime responsibility f

to meet chains damage be placed on the operating company for nuclear damage

showed wherever it occurs, the PRC be relieved of any further

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liability in respect of Hong Kong. In return the PRC

should accept that no claims could be made against the Hong

Kong or UK Governments in respect of damage in the PRC.

would of course be necessary to provide (either in Hong

Kong or UK legislation) that claims for compensation for

damages in Hong Kong, which could not be met by the operating

company, would be met (subject to an overall limit) would be

and/

art by the Hong Kong or UK Government.

number of advantages:-

(a)

This approach has a

Since the nuclear power station is planned to be

30 miles from Hong Kong (with a range of hills

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