E.5
E.6
E.7
12
The rest of the
staff would be appointed through mutual
consultation. In the recruitment of staff, priority would given to Chinese and British nationals.
be
(a) 60% and 40% of the output from the nuclear power station would be sold to GPC and CLP respectively. CLP would pay in foreign The exact amount of currency and GPC, in principle, in RMB. foreign currency GPC would pay was governed by the amount of foreign currency required to repay loans.
GPC would sell one-third of their share of power to CLP who would pay in foreign currency.
(e) Both sides had agreed that given equal conditions, preferential treatment should be given to China and U.K. in the purchase of equipment and services.
Tabled below were the contemplated sources of equipment and
services :
Land
Civil work.
Nuclear reactor
Conventional equipmentl
Guangdong
Guangdong
U.S.A, France or
W. Germany
U.K. or other countries
Transmission equipment
U.K. and China
Other services
Guangdong and
Hong Kong.
Sir Lawrence asked whether the supply contract for sale of the 20% electricity from GPC to CLP would be signed on an annual or a 25-year basis. Mr. Shih agreed in principle to sign a 25-year fixed long term contract. Details of the supply contract would be considered by the Management Group.
Mr. Shih stated that preference would be given to U.K. conventional plant (i.e. turbogenerators, auxiliary equipment etc.) provided that price was competitive.
GPC and CLP agreed that financial models should be run based on the following rates of taxation :
(a) First Year : Nil
(b)
Second and Third Year :
Revenue Tax
2.5%
Profit Tax
15%
Dividend Withholding Tax
5%
Import Tax
Nil
V
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