TNAG-1497-FCO40-2055-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 50

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Mr. Stones then talked about the nuclear liability problem. He said that he was pleased to know that the Chinese Government had issued

statement a

on nuclear liability.

under However,

the existing legal system in Hong Kong, CLP might still be liable for nuclear damage claims raised in Hong Kong.

The Vice-Premier replied that the stand of Chinese Government was very clear as laid down in the reply of State Council. From legal point of view, JVC, as the operator of the power plant, should be solely responsible for all liability arising from any nuclear incident occurred at the site; CLP, as the shareholders of JVC, should not be liable for any damages. He further quoted an example that shareholders of CLP should not be liable for any claims raised against CLP.

To make the issue more clear to the Vice-Premier, Mr.

S. Poon gave a detail explanation on the reasons why CLP might still be liable for the claims raised in Hong Kong. Vice-Premier Li-Peng said that he understood that the concern of CLP was similar to those of Framatome and GEC. On the issue of nuclear liability, China had already done what she could do to protect the contractors. However, the issue could be further studied in future and the various parties concerned might be able to find a solution.

Vice Premier Li-Peng continued to elaborate the following points :

the Chinese side could not do anything to influence the laws of Hong Kong;

the Basic law being drafted at the present moment would only

general aspects and could not cover general

deal with an individual

enterprise;

the

laws promulgated by China were adequate to protect all parties concerned but related cases could only be handled in Chinese court;

in

Mr. Stones raised the subject to construction of fossil-fired plants

China. He recalled his previous meetings with the Vice-Premier in which the methods to help China to speed up the development of power plants were discussed. Mr. Stones mentioned that financial studies were being conducted to evaluate the viability of constructing two coal-fired plants with capacity of 2x350 MW and 2x660 MW based on a equipment - coal exchange scheme. After the study was completed, he would like to submit the report to China for assessment by its professionals to check whether it was beneficial and acceptable to China.