CONFIDENTIAL
SIR ELLY KADOORIE & SONS.
Page ...3..........
Date February 27, 1981
16)
Framatome have stated on several occasions that they are willing to modify the nuclear island, specifically the BONP, to whatever extent is necessary to meet the requirements of the Architect/Engineer engaged by the joint venture.
17)
The Chinese appreciate that, if the joint venture is to succeed, efforts should be made to ensure that the safety standards adopted are acceptable to the Hong Kong Government.
18)
Page 4 Para. 1
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Dr. Marshall's statement that:
the French 'may decide' there must be a French Architect/Engineer
is a question that has never been raised.
19) All along the understanding has been that it is the Project Management Company who will engage the Architect/Engineer and that the most likely contestant for the post would be Bechtel.
20)
Page 4 Para. 3 Dr. Marshall's reference to:
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the value of the fuel contracts'
is generally appreciated and GPC and CLP would insist that the suppliers of the nuclear island would provide at least the first charge.
The question of subsequent charges would be open to later discussion and could be on a joint basis by France and UK.
21)
Such an arrangement would meet with the approval of the PRC who are anxious not to place themselves in the hands of any one supplier for the fuel they need.
22)
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Page 4 Para. 4
Dr. Marshall's reference to the transmission lines is inappropriate, since whatever arrangement is come to will provide for GPC and CLP to obtain whatever transmission towers and lines they require from whatever sources they wish.
23)
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Page 4 Para. 6 I was particularly pleased to read Dr. Marshall's
statement that:
'For all conceivable reactor designs the risk to Hong Kong is entirely negligible. That as a real question may, therefore, be ignored. In my opinion all existing reactor designs which are likely to be offered to this project are sufficiently safe and there is no significant difference between them from this point of view..'
Page 5 Para. 2 Dr. Marshall's statement that I informed the Executive Committee that I would insist on UK guidelines for safety standards is correct.
24)
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25) The subject of safety standards was broached on the train during Dr. Marshall's first visit to Canton wher I referred to an incipient anti-nuclear lobby being formed in Hong Kong. Dr. Marshall told me that UK safety standards were the highest in the world and that it was probable, in the light of Three Mile Island, that similar standards would be adopted by the United States. This had helped him combat statements from a powerful anti-nuclear lobby in England.
26)
The reason behind my statement to the Executive Committee was to make it clear to the Chinese that it would be far easier to obtain the agreement of the Hong Kong Government to the project if the safety standards adopted were identical to those applying to a PWR if constructed in the UK.
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