TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 205

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Operation of the Plant

5 It will be the owner/operator's responsibility to insure against both

against nuclear and non-nuclear accidents to the staff and also damage to plant

and property. Evidence of adequate insurance cover for the latter will

probably be required by the financial backers; the extent and type of

insurance for staff would be a matter under PRC law. 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 deo paragraph

Liability for Damage to the Plant from Severe Accidents

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In the event of a severe nuclear accident, the owner/operator would be

responsible for cleaning up the plant and rendering it safe from public

hazard. The cost of this operation could be such that the liability would

need to be met mainly by governments. It would be important to ensure,

however, that the UK Government's commitment was confined to technical

direction only. Any request for assistance from the joint operating

company should be responded to promptly by the loan of expert technical

and health physics staff from the UK. They 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.

7. The question of liability for restoring and re-commissioning the plant

following a severe nuclear accident, would depend upon the extent of the

damage caused and the resultant financial state of the owner/operator.

The UK's investment would inevitably have been lost.

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Third Party Liability for Severe Accidents

8. Although the probability of a severe accident causing damage to persons

and property unconnected with the station itself, is small, the resulting damage could be very great. The practice under international conventions to which the UK is a party (see Annex A) is for strict liability for damage, ie without proof of negligence or other fault, to be placed on the operator

up to a fixed insurable limit, with the relevant government bearing liability

in excess of that, also up to a fixed limit.

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