TNAG-1499-FCO40-2057-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 56

+CONFIDENTIAL--

AND WILL BE RESPONSIBLE FOR ENSURING THAT THE DAYA BAY PLANT

COMPLIES IN EVERY RESPECT WITH THE SAFETY REQUIREMENTS LAID

DOWN IN FRANCE AND ADOPTED BY INTERNATIONAL ORGANISATIONS MENTIONED

ABOVE. MEMBERS OF THIS COUNCIL AT ONE OF THE BRIEFING SESSIONS HAVE

HEARD FROM REPRESENTATIVES OF THE JOINT VENTURE COMPANY THAT THE

DESIGN BASIS FOR FRENCH POWER STATIONS IS THAT NO EVACUATION MUST

BE NECESSARY 10 KM OUTSIDE THE PLANT EVEN IN THE EVENT OF A

SERIOUS ACCIDENT: AND I WISH TO ADD THAT THIS FACT WAS ALSO TAKEN

INTO ACCOUNT WHEN THE DECISION WAS MADE BY THE GOVERNMENT

THAT THERE WAS NO OBJECTION IN THE PROJECT.

FINAL PART OF TWO

11. THE JOINT VENTURE CONTRACT SIGNED BETWEEN HONG KONG NUCLEAR HNVESTMENT COMPANY AND THE GUANGDONG NUCLEAR INVESTMENT COMPANY CONTAINS PROVISIONS REQUIRING THAT THE HIGHEST INTERNATIONAL SAFETY STANDARDS WILL GOVERN THE DESIGN, MANUFACTURE, ERECTION, AND COMMISSIONING AND OPERATION OF THE DAY BAY PLANT. THEY ALSO PROVIDE FOR EXAMINATION, INSPECTION AND ACCEPTANCE OF ALL THE EQUIPMENT AND PARTS THROUGHOUT THE PROCESS OF CONSTRUCTION AND COMMISSIONING. AS MEMBERS WELL KNOW, THE STANDARDS TO BE APPLIED WILL BE THOSE IMPLEMENTED ON EXISTING FRENCH PLANTS TOGETHER WITH APPLICABLE INTERNATIONAL STANDARDS, PRINCIPALLY THOSE OF THE INTERNATIONAL ATOMIC ENERGY AGENCY AND THE INTERNATIONAL COMMISSION ON RADIOLOGICAL PROTECTION AS WELL AS APPLICABLE STANDARDS LAND DOWN BY THE CHINESE AUTHORITIES.

12. IN ADDITION TO THE PROVISIONS TO WHICH HAVE JUST REFERRED, THE JOINT VENTURE CONTRACT PROVIDES THAT THE MANAGERS OF THE PROJECT AND THE OPERATIONS DEPARTMENTS SHALL PANTALLY BE RECOMMENDED BY HONG KONG NUCLEAR INVESTMENT COMPANY, THAT IS TO SAY, THE HONG KONG PARTNER. FOLLOWING THE FIFTH ANNIVERSARY OF THE COMMISSIONING OF THE SECOND GENERATING UNIT, THE MANAGERS OF THE PROJECT AND OPERATIONS DEPARTMENTS SHALL BE RECOMMENDED BY THE GUANGDONG NUCLEAR INVESTMENT COMPANY, THAT IS TO SAY, THE CHINESE PARTNER, BUT THE DEPUTIES. TO BE APPOINTED AFTER THE FIFTH ANNIVERSARY SHALL STILL BE RECOMMENDED BY THE HONG KONG PARTNER. THE CONTRACT PROVIDES THAT IN MAKING RECOMMENDATIONS BOTH PARTIES SHALL CHOOSE PERSONS WHOSE ABILITY AND EXPERIENCE ARE SUNTED TO THE REQUIREMENTS OF THE RELEVANT JOB.

13. SHIR, & HAVE REFERRED TO THE QUESTION OF COST TO THE CONSUMER, IN OTHER WORDS THE TARMFF. TO ENSURE THAT THE PROJECT WOULD BENEFIT CONSUMERS, WE DECIDED AT AN EARLY STAGE THAT IT WOULD BE WISE TO HAVE A FULL AND INDEPENDENT EVALUATION OF THE FINANCIAL ASPECTS OF THE PROJECT BY MERCHANT BANKERS. ACCORDINGLY IN MARCH 1983. AS MEMBERS MAY RECOLLECT, WE ENGAGED CONSULTANTS TO LOOK #NTO THE FINANCIAL IMPLICATIONS OF THE PROJECT. FURTHERMORE, IN AUGUST OF THE SAME YEAR, WE INVITED A FIRM OF TECHNICAL CONSULTANTS TO STUDY THE POSSIBLE IMPACT OF THE PROPOSED IN-TAKE OF ELECTRICITY FROM DAYA BAY ON THE STABILITY OF HONG KONG'S POWER SYSTEM. IN THE LIGHT OF THE ADVICE RECEIVED WE CONCLUDED THAT THE PURCHASE OF ELECTRICITY FROM THE PROJECT WOULD PROVIDE SIGNIFICANT SAVINGS AND FURTHERMORE THAT ON TECHNICAL GROUNDS THE STABILITY AND RELIABILITY OF HONG KONG'S OWN SYSTEM WOULD NOT BE ADVERSELY AFFECTED.

COMFIDENTIAL-

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114.