TNAG-1058-FCO40-1308-Guangdong-nuclear-power-station-project-1981 — Page 19

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SUBJECT:

GUANGDONG NUCLEAR PROJECT

ESSENTIAL FACTS

Background

1.

he

Proposals for construction of a nuclear power station in Guangdong Province (which is energy-deficient) go back several years. The French were apparently close to a deal, possibly for two reactors, before China's economic

'readjustment' slowed order for foreign technology. Sir L Kadoorie's involvement is also long-standing; began in early 1970s canvassing idea of a nuclear plant across the border to supply electricity to Hong Kong.

2. Current discussions began in earnest in early 1979. Because of shortage of foreign exchange, Kwangtung Electricity Company (KEC) proposed to finance the purchase of hardware from the sale of 50% of the electricity to China Light and Power (CLP) in Hong Kong. Discussions

have since continued both with CLP and NPC (Nuclear Power

Company the joint public/private company responsible for the UK nuclear industry).

Hong Kong Government Position

3.

Hong Kong is already reliant on China for food and

/water