TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 68

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BRIEF FOR MEETING BETWEEN LORD KADOORIE AND HE LORD PRIVY SEAL: GUANGDONG NUCLEAR PROJECTN

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Background

This project is for a proposed PWR nuclear power station

to be situated in the Guangdong province of China which would supply

a large part of its output to Hong Kong for sale by China Light and

Power Company Ltd (CLP).

A joint feasibility study was carried out by the Guangdong

Power Company and CLP, and a report delivered to the Chinese and

Hong Kong Governments in December 1980. Dr Walter Marshall of UKAEA

acted as technical adviser to CLP during the study.

The report recommended that a 2 x 900 MW PWR station should be

constructed, and expressed a preference for Chinese and UK non-

nuclear equipment and for French, German or USA supplier of the

nuclear hardware. The Chinese are still considering the report

and have yet to reach a decision, but recognise the significance of UK/Hong Kong and UK/CLP connections. The sale of electricity

to CLP is critical to the viability of the project, as only in this

way can the necessary foreign exchange be generated to enable the

project to be self-sufficient in foreign exchange.

One difficulty facing the UK is that as we do not have a total

PWR capability at present, it would be necessary for the conventional equipment supplier, GEC, to enter into some form of relationshi with a nuclear island supplier, in practice either Framatome

(France) or Westinghouse (USA). The benefit to the UK in commercial

terms could be anywhere between £370 m am £600 mdpending on the

choice of nuclear partner and the overall extent of supply.