CONFIDENTIAL
BACKGROUND
CHINA LIGHT AND POWER COMPANY
1. China Light and Power (CLP) is a major customer for the UK and since 1977 has placed orders with the UK for two complete power stations and a high voltage distribution network worth more than
£1,200m at current prices.
2. The Prime Minister performed the official opening ceremony for
Castle Peak A in September 1982. She last met Lord Kadoorie in May
1984.
3.
Lord Kadoorie has been under considerable pressure in recent
months as a result of the disagreement between CLP and their largest shareholder, Exxon, over CLP's participation in the Guangdong nuclear project. Although Exxon eventually accepted the terms out by the Chinese for the off-take of electricity, Lord Kadoorie's standing with the Chinese was somewhat damaged in the process.
set
4. It would be helpful if the Prime Minister could reassure Lord Kadoorie that we recognise the crucial role he has played in bringing the project so near fruition, and let him know that she had mentioned to the Chinese Premier his own and CLP's commitment to the
project, if she has had the opportunity to do this in China.
GUANGDONG NUCLEAR PROJECT
5. A background note on the project is attached.
NATIONALITY
6. On past occasions, including a meeting with Prime Minister in
May 1974, Lord Kadoorie has raised the question of the passports to
be held by Hong Kong citizens after 1997. His main concern appears
to be to retain the loyalty and confidence of senior Hong Kong
Chinese employees of CLP. We have said that in general all persons of Chinese race in Hong Kong are considered by the PRC to be Chinese
nationals and will therefore be eligible for SAR passports after
1997. But those who are BDTCs or 30 June 1997 will be eligible to
retain another form of British nationality after that date for the
remainder of their lives.
CONFIDENTIAL
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