TNAG-1058-FCO40-1308-Guangdong-nuclear-power-station-project-1981 — Page 17

CONFIDENTIAL

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Hong Kong Government position

6. Hong Kong Government will wish to be assured, in order to satisfy public opinion, on safety, and assurance of electricity supply. (Electricity also needs to be competitively priced or Hong Kong might prefer further investment in its own generating capacity.)

Fuel Supply

7. Continuity of fuel supply vital. Recognise that

reactor supplier has interest in fuel supply. But because

of Hong Kong connection greatest confidence would result if British firms (BNFL and/or URENCO) involved in supply arrangements.

8.

(a)

(b)

(c)

Defensive

Credit terms

Confident that UK can offer fully competitive terms.

Non-proliferation

A matter for government of supplier of the nuclear reactor. We would wish to participate in any discussions, but would not expect more restrictive conditions than likely to be required by other

government.

Accident liability

Raises important questions. Need for later discussions

between our two governments.

CONFIDENTIAL