TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 194

WHEREAS the Guangdong Electric Power Company and China Light and Power

Company, (hereinafter referred to jointly as "Client") have submitted to

the Gunagdong provincial authorities and to the Government of the

People's Republic of China and to the Hong-Kong Government and to the

United kingdom Government a feasibility report recommending the

construction of a nuclear power plant in Guangdong (hereinafter referred

to as "the Project") to supply electricity to the Guangdong Electric

Power Company system and to the China Light and Power system in Hong-

Kong, and

WHEREAS FRANATOME and GEC have separately approached the Guangdong

Electric Power Company and China Light and Power Company for the supply

of the Nuclear Island and the Conventional Island respectively, and

WHEREAS in consideration of the fact that in the feasibility report

submitted by the Client to the Chinese authorities it is stipulated that

2 preference will be given to British and Chinese

participation

in the construction

manufacturers

in

of the conventional part of the

station if their offers are technically sound and are competitive

price and financial conditions and that such preference appears to be a

pre-condition to CLP's commitment for purchase of electricity therefrom

and in consideration of the close relationship between CLP and CEC and

in consideration of the interest expressed by the Chinese Authorities

and China Light and Power Company in FRAMATOME for the nuclear portion

of the Project, both GEC and FRAMATOME have come to the conclusion that

their chances of securing a contract or contracts (hereinafter referred

to as Contract(s)) for the Project would be improved by combining their

efforts, and