TNAG-1497-FCO40-2055-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 25

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MR CHANNON'S MEETING WITH VICE PREMIER LI PENG, 11.45am 9 JUNE 1986

1

Mr Channon was accompanied by Sir Richard Evans, Mr Hutton OT2, Dr Dobbie SEE3 and Mr Cruickshank OT2. Vice Premier Li Peng was accompanied by Madam Yang Danhua, Deputy Director, Third Bureau, MOFERT, Huang Renquan (Chinese Commercial Counsellor) and others.

Courtesies

2

Vice Premier Li Peng recalled that he had been invited to visit Britain in 1985 when visiting Paris, but had been unable. He was glad to be visiting

London now.

3 Mr Channon welcomed the visit and said how much HMG had appreciated the visit in May of Mr Zheng Tuobin. Li Pen, expressed gratitude for the hospitality Zheng had received.

Guangdong Nuclear

4

Mr Channon said that his predecessor had promised that HMG would take a continuing interest in the work of the UK contractors. He handed Li Peng

a letter setting out HMG's proposals, which officials could discuss later.

5

Li Peng said the project was of great interest; he hoped that after 5 years' negotiations agreement on the remaining issues would soon be reached and a contract signed. He did not want China's nuclear energy programme to be disrupted by Chernobyl. But many people in Hong Kong were concerned about safety and wanted the Guangdong project to be cancelled or reconsidered. Hong Kong had 25% of the total share capital, and more than 70 per cent of the power would be supplied to Hong Kong. He considered it imperative that HMG should join the Chinese Government in mounting joint efforts to allay concern about safety.

6 Mr Channon said that Britain would be glad to co-operate, as provided for under the UK-China nuclear co-operation agreemnt, and would be happy to consider any specific proposals.

Coal-fired power stations

7 Mr Channon expressed interest in the Yueyang project. Li Peng said that China support this project, which was in Hunan Province on the Yangtze River, with good access for coal suppliers either by rail or water. China was ready to use part of the £300 million development loans for this project, but commercial negotiations had to be completed satisfactorily.

8 In response to a question, Mr Channon said that NEI and Balfour Beatty were the UK companies involved; GEC were working on proposals for other coal-fired power stations. Li Peng said he knew both NEI and GEC.

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