TNAG-1506-FCO40-2064-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 13

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YOUR TELNO 2421 : DAYA BAY : PARLIAMENTARY QUESTIONS.

1. WE HAVE NO COMMENT ON YOUR PROPOSED REPLY TO MR. PARRY'S FIRST QUESTION (PARAGRAPH 2 OF TUR).

2. WITH REGARD TO MR. PARRY'S SECOND QUESTION, WE SUGGEST THE FOLLOWING ANSWERM IT IS RATHER LENGTHY BUT I THINK THIS

IS NECESSARY UNLESS YOU ARE CONTENT WITH THE FIRST PARAGRAPH ON ITS OWN:

**THE HONG KONG GOVERNMENT'S POLICY WITH REGARD TO THE DAYA BAY NUCLEAR POWER PLANT HAS BEEN SET OUT IN THE SPEECHES GIVEN BY THE FINANCIAL SECRETARY IN THE LEGISLATIVE COUNCIL OF HONG KONG ON 16 JULY AND 15 OCOTBER 1986. COPIES HAVE BEEN (WILL BE PLACED IN THE LIBRARY.

BRIEFLY, THE DAYA BAY NUCLEAR POWER STATION IS TO BE BUILT IN THE PEOPLE'S REPUBLIC OF CHINA. THE HONG KONG GOVERNMENT'S DIRECT INVOLVEMENT IN THE PROJECT HAS BEEN CONFINED TO TWO AREAS..FIRSTLY, IN ACCORDANCE WITH THE REQUIREMENTS OF THE SCHEME OF CONTROL WHICH REGULATES THE COMPANY'S FINANCIAL OPERATIONS IN HONG KONG, THE CHINA LIGHT AND POWER COMPANY, WHICH SUPPLIES ELECTRICITY TO KOWLOON AND THE NEW TERRITORIES, SOUGHT THE AGREEMENT OF THE HONG KONG GOVERNMENT TO PURCHASE ELECTRICITY FROM THE DAYA BAY POWER STATION. HAVING EXAMINED THE CONTRACTUAL ARRANGEMENTS THAT HAD BEEN NEGOTIATED FOR THE SALE OF ELECTRICITY TO THE CHINA LIGHT AND POWER COMPANY FROM THE DAYA BAY POWER STATION, THE HONG KONG GOVERNMENT GAVE ITS AGREEMENT TO THE OFF TAKE. SECONDLY, THE HONG KONG GOVERNMENT AGREED TO PROVIDE A GUARANTEE FOR LOANS OF UP TO HK DOLLARS 600 MILLION TO BE RAISED BY THE HONG KONG NUCLEAR INVESTMENT CORPORATION WHICH HAS A 25 PER CENT SHARE IN THE JOINT VENTURE COMPANY RESPONSIBLE FOR THE DAYA BAY PROJECT.

IN ADDITION, LIKE ANY MUNICIPAL GOVERNMENT WITH A NUCLEAR POWER STATION LOCATED NEAR TO ITS TERRITORY, THE HONG KONG GOVERNMENT HAS NATURALLY ALWAYS BEEN CONCERNED THAT THE POWER STATION SHOULE BE BUILT AND OPERATED TO THE HIGHEST INTERNATIONAL STANDARDS AND THAT CONTINGENCY PLANS SHOULD BE DRAWN UP IN THE EVENT OF ANY ACCIDENT AT THE STATION.

THE HONG KONG GOVERNMENT HAS ENGAGED THE UK ATOMIC ENERGY AUTHORITY AS CONSULTANTS IN THE DRAWING UP OF SUCH CONTINGENCY PLANS.''

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