the Chinese have seen the 'Kemeny' report on the Three Mile Island incident, and KEC have made it clear to send CLP that they wish CLP to manage and operate the nuclear power station until their own staff are capable of doing so;
Bloem
CLP would form a wholly-owned subsidiary to participate in the joint venture.
The Hong Kong. Government's position
7
SAMOSTALON
#
The project is likely to be one of the many China would want. to undertake in the context of her current modernisation programme. It is clear that it has been offered by the Chinese as a joint venture witho Hong Kong interests for three reasons:
(a)
they have no expertise in this field;
(b)
(c),
they have been impressed by CLP's management capability (parties from both Guangdong and Peking have been to see the Tsing Yi power station); and
14
the need for China to earn foreign exchange to meet at least that part of the cost of the project which must ⠀ be paid for in foreign exchange earnings.
solcum
NEMÁ NO
Even if the requirement at (c) is met there must be some doubt, having regard to the high estimated cost of the project, whether it will ever materialise. Sir Lawrence Kadoorie originally put the chance of success at no more than 20%. However, it has become clear in recent weeks ⠀⠀ that KEC are pursuing the project seriously, and it is timely that the Hong Kong Government should give consideration to what its position should be in such an eventuality.
+
(a) The desirability of purchasing
electricity from China
8
A supply of electricity from China commencing in 1988 would conveniently meet part of Hong Kong's forecast additional demand for the 1990's. When Members' advice was sought in September 1978 on the grant to HEC of a new power station site on Lamma Island, they were informed that the new sites granted to HEC and to CLP (at Tap Shek Kok) were required to house additional generating sets which, wa together with existing ones, were expected to meet additional demand only up to 1991. Thereafter, (an) additional site(s) would need to be found if forecast additional de mand is to be met. This would be difficult,
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