CONFIDENTIAL
36
11KK 026/19
A
RECORD OF MEETING BETWEEN THE LORD PRIVY SEAL AND LORD KADOÓRIE 2
19 OCTOBER 1981
Present:
The Rt Hon Humphrey Atkins MP
Lord Kadoorie
Mr Tom Arnold MP
Mr R D Clift
Mr M A Arthur
GUANGDONG NUCLEAR PROJECT
See (37
1. Lord Kadoorie described the steps leading to the proposal for the building of a nuclear power station in Hong Kong which would sell power to the Territory. The joint study by China Light and Power (CLP) and the Guangdong Electric Company (KEC) had been the most complete examination carried out on any major project under consideration in China. Lord Kadoorie referred to the role of Dr Marshall of the Atomic Energy Authority who tended to favour cooperation with Westinghouse. Clearly, the pressurised water reactor could only be supplied by the United States, West Germany of France. In Lord Kadoorie's view, cooperation with Franch offered the best prospects.
One complication was that GEC were proposing the use of
a 3,000 rpm turbine which should be cheaper and better than previous types but was in itself a prototype. Considerable persuasion would be necessary to get the Chinese to ageee to accept this. Lord Kadoorie said that he was trying to persuade the Chinese Government to change. their mind on the need for open tendering for the project and to go for a negotiated agreement divided into ten sectors.
2. Mr Atkins asked what the present Chinese attitude was to a negotiated package. Lord Kadoorie explained the proposals for a joint venture company consisting of:
3.
a) a Chinese-registered company owning the power station
of which 60% shares would be held by another purely Chinese company and 40% by foreign interests.
b) a joint Chinese/foreign management company set up to run
the project for about 25 years with responsibility for guaranteeing its continuity of supply and safety.
Lord Kadoorie said that there were also possible complications over the financial arrangements. It was desirable to get a 100% Bank of China guarantee for any loans for the project. He himself would be going to Peking in November and would press for a cooperative project involving the British and the French.
PROPERTY VALUES IN HONG KONG AND THE FUTURE
4.
•
Lord Kadoorie described the recent land boom which had led to unrealistic prices. There were now signs of this slowing down.
CONFIDENTIAL
/Mr Atkins
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