TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 137

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GRS 325

SECRET

FM HONG KONG 241015Z JULY B1

TO PRIORITY F C O

SECRET

TELEGRAM NUMBER 699 OF 24 JULY 28 JUN

INFO PRIORITY PEKING HONGKONG -GOVERNMEN

CE LONDON

INDEX

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9/70.9

GUANGDONG NUCLEAR PROJECT

367

MY TELNO: 678 (NOT TO PEKING)

ON 21 JULY EXECUTIVE COUNCIL DECIDED THAT ON ECONOMIC AND POLITICAL GROUNDS, CHINA LIGHT AND POWER COMPANY (CLP) SHOULD BE INFORMED THAT THE HONG KONG GOVERNMENT HAS NO OBJECTION IN PRINCIPLE TO CLP PARTICIPATING IN A JOINT VENTURE TO DEVELOP, OPERATE AND MANAGE A NUCLEAR POWER STATION IN CHINA, AND TO CLP PURCHASING POWER FROM THE NUCLEAR POWER STATION GENERALLY IN THE TERMS INCLUDED IN THE FEASIBILITY STUDY, BUT CLP SHOULD CONSIDER WITH THE GUANGDONG POWER COMPANY (GPC) POSSIBLE WAYS IN WHICH THE COST TO CONSUMERS IN HONG KONG, PARTICULARLY IN THE EARLY YEARS, WOULD BE REDUCED TO A LEVEL NOT EXCEEDING THAT APPLICABLE TO ELECTRICITY PRODUCED IN HONG KONG: AND IF SUCH A REDUCTION COULD NOT BE ACHIEVED A REPORT SHOULD BE MADE TO EXECUTIVE COUNCIL. CLP IS TO BE ASKED TO EMPHASIZE BOTH TO THE PROPOSED JOINT VENTURE COMPANY AND TO THE SUPPLIERS OF EQUIPMENT THAT TIME IS OF THE ESSENCE IN ALL CONSTRUCTION AND EQUIPMENT CONTRACTS. ALSO, CLP IS TO BE REQUESTED TO ALLOW THE HONG KONG ELECTRIC COMPANY (HEC) TO SEE THE FEASIBILITY STUDY REPORT, IF HEC SO WISHES, AND TO CONSIDER SYMPATHETICALLY ANY INTEREST HEC MAY SHOW IN INVESTING IN THE PROPOSED HONG KONG COMPANY (TO BE MANAGED AND CONTROLLED BY CLP) THAT WOULD PROVIDE WITH GPC, THE EQUITY ELEMENT FOR THE FINANCING OF THE PROJECT.

2. PARA 2 OF TUR. SECRETARY FOR THE ENVIRONMENT WILL NOW GET IN TOUCH ABOUT A PRESENTATION TO EXECUTIVE COUNCIL

ON ENVIRONMENTAL ISSUES.

CATER

MINIMAL

HK&GD FED JNU

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