TNAG-1506-FCO40-2064-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 25

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TOP COPY Q DIST ?

CONFIDENTIAL

GRS 270

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 3549

OF 28100OZ OCTOBER 86

INFO PRIORITY PEKING

16611

RECEIVED IN REGISTAY

*NOFX

29 CCT 1986

RECSTRY

tion Takan

DAYA BAY NUCLEAR THIRD PARTY LIABILITY

THROUGHOUT NEGOTIATIONS ON DAYA BAY THE QUESTION OF THIRD

PARTY NUCLEAR LIABILITY HAS NEVER BEEN PROPERLY ADDRESSED.

2. FOLLOWING THE CHERNOBYL ACCIDENT THE SOVIET AUTHORITIES REFUSED TO ENTERTAIN ANY CLAIMS FROM THIRD PARTIES OUTSIDE THE SOVIET UNION. THE QUESTION IS LIKELY TO ARISE IN PEOPLE'S MINDS HERE WHETHER THE CHINESE WOULD ENTERTAIN CLAIMS FROM HONG KONG FOR ANY DAMAGES ARISING FROM AN ACCIDENT AT DAYA BAY.

3.

CHINA IS NOT A PARTY TO THE PARIS CONVENTION ON THIRD PARTY

IT IS UNCLEAR LIAIBILTY IN THE FIELD OF NUCLEAR ENERGY, 1960. WHETHER CITIZENS OF HONG KONG WOULD BE ABLE TO SEEK REDRESS OF ANY CLAIMS ARISING OUT OF AN ACCIDENT AT DAYA BAY, ALTHOUGH THE CHINESE WOULD, OF COURSE, FIND IT DIFFICULT TO TAKE A SIMILAR POSITION TO THAT TAKEN BY THE RUSSIANS SINCE THEY REGARD HONG KONG AS PART OF CHINA NOW, AS WELL AS AFTER 1997.

4.

WE BELIEVE THAT WE SHOULD TRY TO SEEK SPECIFIC ASSURANCES FROM THE CHINESE AUTHORITIES THAT PERSONS IN HONG KONG WOULD BE ABLE TO OBTAIN ADEQUATE REDRESS THROUGH THE CHINESE COURTS IN THE EVENT OF A NUCLEAR INCIDENT AT DAYA BAY. WE RECOGNISE THAT DAMAGES AWARDED BY A CHINESE COURT MIGHT BE VERY MUCH LESS THAN SUMS AWARDED BY COURTS IN HONG KONG OR ELSEWHERE.

IT IS DOUBTFUL THAT,

IN THE EVENT OF SERIOUS DAMAGE BEING SUFFERED BY HONG KONG PARTIES, COMPENSATION FROM CHINESE COURTS WOULD BE ANYTHING LIKE ADEQUATE. NEVERTHELESS WE THINK THAT WE SHOULD TRY TO SECURE THE PRINCIPLE THAT A CHANNEL OF REDRESS SHOULD EXIST FOR HONG KONG

PARTIES.

CONFIDENTIAL

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