on economic and political grounds, the Hong Kong Government should inform the China Light and Power Company Limited that it 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 (paragraph 34). But CLP should consider with GPC possible ways in which the cost to consumers in Hong Kong, particularly in the early years, could be reduced. These should include:
(i)
the purchase of electricity by CLP in excess of its 40% entitlement without surcharge (paragraph 27);
(ii)
(iii) the negotiation of taxation in China at rates
the depreciation of the whole plant over 30 rather than 20 years (paragraph 26(a)); and
applicable to the Shenzhen Special Economic Zone (paragraph 26(b)).
Also, CLP should emphasise both to GNPC and the suppliers of equipment that time is of the essence in each and every construction and equipment contract (paragraph 28); and
CLP should now be asked to give HEC a sight of the feasibility study report, if HEC so wishes, with a view to considering sympathetically any interest HEC may show in investing in HKNIC.
(The Secretary for Economic Services (Mr D. G. JEAFFRES ON), the Political Adviser (Dr D. C. WILSON), the Principal Government Electrical and Mechanical Engineer (Mr G. J. OSBORNE) and the Chief Treasury Accountant (Economic Services) (Mr P. G. WINDER) will attend before the Council for the discussion of this item).
2nd July 1981 (SCR 1/3571/81)
SECRET
COUNCIL CHAMBER
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