TNAG-1506-FCO40-2064-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 2

i

GRS 300

CONFIDENTIAL

FM PEKING

TO IMMEDIATE FCO

TELNO 2084

OF 040023Z NOVEMBER 36

INFO IMMEDIATE HONG KONG

6$2

Confidential

699

TOR CORY

HONG KONG TELNO 3549 AND YOUR TELNO 2443 TO HONG KONG DAYA BAY:

NUCLEAR THIRD PARTY LIABILITY

166/1

4 NOV 1986

1. WE AGREE IT WOULD BE USEFUL FOR CONFIDENCE IN HONG KONG TO ESTABLISH WITH THE CHINESE. SOME CHANNEL OF REDRESS WHICH WOULD EXIST FOR HONG KONG PEOPLE, EVEN IF IN PRACTICE THE AMOUNTS OF

COMPENSATION THEY COULD EXPECT BE SMALL.

2. THE ISSUE WILL NEED CAREFUL HANDLING WITH THE CHINESE. IT WOULD

BE COUNTER-PRODUCTIVE TO INTIMATE THAT WE DOUBTED THEIR ABILITY TO

RUN DAYA BAY SAFELY. ONE WAY IN WHICH TO PAISE THE SUBJECT WOULD BE TO POINT OUT THAT, SINCE CHINA IS NOT A PARTY TO THE PARIS

CONVENTION OF THIRD PARTY LIABILITY IN THE FIELD OF NUCLEAR ENERGY

(1960), HONG KONG PEOPLE WOULD NOT HAVE THE REASSURANCE WHICH

NORMALLY WOULD GO WITH THIS CONVENTION. IT WOULD BE MOST USEFUL IF

THE CHINESE WOULD CONSIDER SOME OTHER FORM OF REASSURANCE WHICH

COULD BE MADE PUBLIC IN HONG KONG.

3. ON MODALITIES, WE IMAGINE WE WOULD EVENTUALLY NEED TO TAKE THIS

UP WITH THE MINISTRY OF NUCLEAR INDUSTRY. HOWEVER THE DETAILED

GROUND WORK COULD BEST BE DONE IN HONG KONG, WITH ECONOMIC SERVICES

BRANCH TAKING THE LEAD.

700

GISTRY Action Taken

4.

NCNA REPORTED ON 25 OCTOBER THAT DAYA BAY HAD TAKEN OUT AN INSURANCE POLICY WITH THE PEOPLE'S INSURANCE COMPANY OF CHINA WHICH

WILL COVER CONSTRUCTION AND EQUIPMENT INSTALLATION, PROPERTY,

TRANSPORTATION, VEHICLES AND OWNER'S AND PUBLIC RESPONSIBILITIES'.

IT WOULD BE USEFUL TO EXPLORE WITH THE CHINESE WHAT EXACTLY WOULD BE

COVERED BY 'OWNER'S AND PUBLIC RESPONSIBILITIES'. HONG KONG MIGHT

FIND THIS REPORT A USEFUL PEC ON WHICH TO HANG THEIR INITIAL

APPROACH. NO DOUBT THEY CAN DISCUSS THE POSITION FIRST THE J.V.C.

EVANS

PEHPAN 1099

[COPIES SENT TO NO 10 DOWNING STREET}

GUANGDONG

י.

LIMITED

HKD

FED

NED

TRED

PS

PUSD(MR CROWLEY) WED

PS/MR RENTON

PS/PUS

MR GILLMORE

MR WILSON MR SLATER

ADDITIONAL DISTRIBUTION

GUANGDONG NUCLEAR

Confidential