TNAG-1160-FCO40-1440-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Hong-Kong--1982 — Page 23

CONFIDENTIAL

UK SUPPORT MEASURES FOR THE 'A' AND. 'B' STATIONS

9. To secure the international competitiveness of the overall UK offers

for both stations, Ministers agreed that the Department of Industry should

fund under the Industry Act the design, quality assurance and training

services provided from the CEGB through their overseas consultancy arm,

British Electricity International (BEI). The total cost of these services

to the Department of Industry was £15m for the 'A' station and £13.5m for the

'B' station (1981 prices). Ministers also agreed to a considerable reduction

in ECGD premium for both stations.

PROSPECTS FOR FUTURE BUSINESS

10.

£

The Prime Minister is aware that the UK is currently pursuing a contract

for the supply of a 2 x 900MW PWR nuclear power station in the Chinese

Province of Guangdong, adjacent to Hong Kong. CLP and the Guangdong Power Co

(GPC) would be involved in the project management and operation of this

proposed station, which would supply electricity both to Guangdong Province

and Hong Kong. However should the project not come to fruition, CLP are

likely to consider the possibility of a Castle Peak 'C' station to meet

rising electricity demands. Should the situation arise the UK would be

extremely well placed to pursue the contract because of its successes on the

'A' and 'B' stations.

DEPARTMENT OF INDUSTRY

26 August 1982

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CONFIDENTIAL