TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 14

it would be a project which China wants (probably for technical reasons) and for which Hong Kong would provide the foreign exchange. (Comment: this political argument is in paragraphs 9 and 11 of the Annex);

if, because of sales to Hong Kong, British suppliers obtained substantial contracts, then Hong Kong's relations with Britain would also benefit. (Comment: because no British firms have yet built a Pressurised Water Reactor, the "nuclear steam supply system" would probably have to come from France or the US. But the "balance of nuclear plant" and the generating equipment could come from British suppliers);

it would involve diversifying further Hong Kong's sources of primary energy for the production of electricity. Expressed as percentages of fuel consumed, the proportion of electricity supply relying on different types of fuel would be:

(d)

(e)

Year

1981

1985

1988

1992

Oil

100%

60%

28%

15%

Coal

40%

62%

61%

Nuclear

10%

24%

Because the plant would reach maximum output in 1992 and because demand for electricity is expected to continue to grow the percentage of electricity supply relying on nuclear fuel would decline after 1992. (Comment; this is not a very strong argument. Once the power companies are using coal, they will have diversified into a source of primary energe which, in contrast to oil, a large number of countries both developed and developing are capable of supplying; also there are vast exploitable reserves available. By comparison, sources of nuclear fuel, and facilities for processing it, are limited, and its military significance means that supplies and facilities are by no means guaranteed);

a nuclear power station is not dependent on regular shipments of fuel as are coal- or oil-fired stations;

there would be a saving in terms of land within Hong Kong's borders. (Comment: this is not a strong argument. Because of the special requirements involved, any land earmarked for further power stations in Hong Kong could be used for other purposes only on a temporary basis).

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