TNAG-0950-FCO40-1169-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 239

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RECEIVED IN REGISTRY NO. 51

13 AUG 1980

DESK OFFICER

INDEX

REGISTRY

PA

Action Taken

Secretary of State

cd PS or

chard

PS/Secretary

Mr Bullock o r Mr Caines DOT Mr Benjamin Mr Havelock Mr Brown

GUANGDONG NUCLEAR POWER STATION

When we saw Sir Lawrence Kadoorie last week I promised to let you have a note reporting on the more substantive discussions I was to have with him later in the week.

2 You have already seen from the note of the discussion from No 10 that the Prime Minister was enthusiastic in her support of Sir Lawrence's efforts in Guangdong. The Lord Privy Seal in his talk with Sir Lawrence also acknowledged the political and economic importance of the project, though he wondered whether the political dimension was uppermost in the minds of the Chinese.

3

We here at official level are also enthusiastic about this project but recognise that there are some very difficult issues to be resolved before China Light and Power could indicate a definitive HMG view in their negotiations with the Guangdong authorities. The main issues are:-

(i)

(ii)

possible HMG and/or Hong Kong Government equity participation;

responsibility for safety and liability in the event of a nuclear accident;

(iii) the nature of any commercial package including

the choice of nuclear island vendor;

4

(iv)

the financial and in particular credit terms that might be offered;

(v)

the provision of management support for the design, installation and operation of the station.

Taking each of these in turn:-

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