TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 198

CONFIDENTIAL

DSR 11C

between), the chances of damage there are considerably

less than in the PRC. The contingent liability would

if shant than be less if shared on a territorial basis than, in

Water

ト

proportion to the respective PRC and Water holdings

in the operating company;

(b)

The people of Hong Kong would have a reliable guarantee

Whill kn of compensation in the event of nuclear accidentinot

dependent on PRC acceptance, eg of valuations of

property and expectation of life, which might differ

H.M. G's while in the project what in plas considerably between Hong Kong and the PRC.

in

this

assumpth of Labilly care abdo

This could

help overcome public resistance in Hong Kong to the

Guangdong project;

(c) By placing strict liability on the operating company,

(d)

5.

with the PRC, Hong Kong and UK Governments standing

behind it, it might be possible to exempt British

their

suppliers from the normal liability for damages

arising from fault of design, equipment or operation.

However this exemption should not extend to non-

British suppliers unless their governments were

similarly prepared to accept some residual third party

liability. Otherwise they should be liable in the

normal way.

In practice this should mean that those

primarily liable to pay compensation should have a

right of recourse against their suppliers when fault

on their part can be proved;

The liability would exist only as long as Hong Kong

and the New Territories remain the responsibility of

Churauch

the UK outside the control of the PRC.

If liability is to be shared, the way this is to be

achieved will need to be expressed in some form of agreement

between the UK and the PRC. In theory this might be

:

CONFIDENCES