TNAG-1472-FCO40-2003-Ministerial-visits-from-the-UK-to-Hong-Kong-1986 — Page 87

JA2AOS (2)

CONFIDENTIAL

MR WADDINGTON'S VISIT TO HONG KONG: 21-27 SEPTEMBER

IV. HONG KONG: DAYA BAY (GUANGDONG) NUCLEAR POWER PROJECT

Background

1. GEC hopes to sign by 25 September a contract worth some

£250M for the supply of turbine generators for a nuclear power station at Daya Bay (50km from Hong Kong) in Guangdong Province, China. Framatome (France) is supplying the nuclear reactors.

The Midland Bank is the lead bank in an associated loan

agreement. Most of the electricity will be sold to Hong Kong, and the plant will be 25% owned by Hong Kong interests.

2. Since Chernobyl there has been great concern in Hong Kong about the implications for the territory of an accident at Daya

Bay.

coalition of anti-nuclear groups claimed to have

collected over a

A

presented

them

million signatures against the project and

to the Chinese in August. The issue has been

widely viewed as a litmus test of China's attitude to Hong Kong opinion in the run-up to 1997.

3.

in

The Chinese have emphasised that their civil nuclear

programme will go ahead.

Since Hu Yaobang's visit to UK

June, we have urged them to publicise measures to ensure the safe construction and operation of the plant. They have done

so, and have followed closely the concern in Hong Kong.

4.

Missions from Hong Kong's Legislative Council (LegCo)* (led

by Miss Tam and Mr Allen Lee, the ExCo Unofficials) visited countries with nuclear power programmes in August. They have

published a report

report making observations on safety, but taking no

explicit stand on the desirability of the project for Hong Kong. They are to visit Peking between 15 and 18 September to discuss their Report with the Chinese. Contracts should be signed

shortly thereafter; it is

presentationally helpful that the

CONFIDENTIAL