GRS 850
CONF-IDENTINAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2257
OF 120615Z JULY 86
MICK 166/
RECEIVED IN KEZ
14 JUL 1986
CONFIDENTIAL
INFO *MMED HATE HONG KONG GOVERNMENT OFFICE LONDON
INFO PRIORITY PEKING, PARS
266.
TOP COPY
MY TELNO. 2147: NUCLEAR SAFETY : CHINA.
FURTHER TO MY TUR REPORTING ON THE SECOND SESSION OF THE UMELCO PANEL BRIEFING, A THIRD SESSION WAS HELD THENS A.M. TO DISCUSS THE ECONOMIC ASPECT OF THE DAYA BAY PROJECT. IT WAS NOT OPEN TO THE PRESS, BUT A PRESS CONFERENCE WAS HELD AFTERWARDS. STEVEN POON OF CLP, ACCOMPANIED BY TWO ASSISTANTS, ATTENDED. THE ADMINISTRATION WAS ALSO PRESENT BY INVITATION ALTHOUGH NO QUESTION WAS PUT TO THE
ADMINISTRATION.
S
2. AROUND 17 18 MEMBERS, MOSTLY MODERATERS, WERE PRESENT. THE MORE ARTICULATE (MARTIN LEE) OR BETTER-KNOWN OPPONENTS (SZETO WAH) WERE ABSENT. THE MEETING WENT QUITE WELL, AND THE PREVAILING MOOD WAS CALM AND RATIONAL. THIS IMPGOVEMENT OVER THE LAST BRIEFING COULD BE
DUE TO A BETTER UNDERSTANDING BY MEMBERS OF THE PROJECT OR MERELY BECAUSE IT WAS CLOSED TO THE PRESS AND PUBLIC.
3. THE DISCUSSION, TRUE TO ITS AGENDA, WAS KEPT LARGELY TO THE ECONOMICS OF THE PROJECT (BUT SEE PARA. 4 BELOW). POON PRECEDED THE DISCUSSION BY TABLING A CHRONOLOGY TRACKING THE EVOLVEMENT OF THE PROJECT OVER THE YEARS FROM 1979 AND A PAPER ON CLP'S GENERATION DEVELOPMENT PLAN. HE WAS CLOSELY QUESTIONED ON HOW NUCLEAR POWER WOULD BE TRANSLATED INTO BENEFITS TO THE HK CONSUMERS IN TERMS OF TARIFFS, THE ECONOMICS OF NUCLEAR GENERATION VERSUS FOSSIL FUEL GENERATION ESPECIALLY IN THE LIGHT OF THE LOW FOSSIL FUEL PRICE. A FEW MEMBERS WERE ANXIOUS ABOUT THE PRICE OF NUCLEAR POWER TO HK ON EXPORY OF THE FIRST SIX-YEAR PERIOD PROTECTED BY THE JOINT VENTURE CONTRACT, AND SOME OTHERS WERE SUSPICHONS ABOUT THE SAVINGS FROM NUCLEAR POWER BEING CONVERTED INTO PROFINTS FOR THE JVC SHAREHOLDERS RATHER THAN PASSED ON TO HK'S CONSUMERS.
4. A FEW INTERESTING POINTS EMERGED :
(A) RICHARD LAN REQUESTED POON'S COMMENTS ON REPORTS THAT
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(H) FRAMATOME HAD NOT RECEIVED ANY ORDERS FOR EQUIPMENT IN
THE LAST 5-6 YEARS, AND WAS RELYING ON THE DAYA BAY CONTRACT FOR SURVIVAL:
CONFIDENTIAL
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