TNAG-1507-FCO40-2065-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 19

GINAIY

BACKGROUND

1.

Mr Cook has asked six questions in the last few days on the

Daya Bay nuclear power project.

2.

Since Chernobyl, China's proposal to build a nuclear power

station at

at Daya Bay, some 50 kilometres from Hong Kong, has aroused

widespread concern in Hong Kong about the implications for the

territory of a nuclear accident at the station. A petition urging

the Chinese to abandon the project was claimed to contain over one

million signatures.

3

Members of Hong Kong's Legislative Council visited nuclear

installations

third countries during the summer to acquire

information on nuclear safety. They were subsequently invited to

in

Peking. They were assured by the Chinese Government that safety and

quality are given top priority in China's nuclear planning. The

Chinese authorities have responded positively to the panel's

observations on nuclear safety.

4.

The main contracts for the project were signed on 23

September; French organisations are to supply the nuclear technology

and expertise (including training of key staff), and GEC is to

supply turbines in a contract worth some £250M. Since contract

signature, public interest in the subject in the Hong Kong has

subsided somewhat, and is now focussed on the price that Hong Kong

will pay for electricity foom the station.

power generated at Daya Bay will go to

operating company's equity is Hong Kong-owned.

consumers

the

5.

Some 70% of

Hong Kong; 25% of the

The mention in the Question of loan arrangements

is

assumed

to refer to the Hong Kong Government's guarantee to the owner of

Hong Kong's 25% interest in the project for up to HK$600M of loans

to over Hong Kong's share of the project cost.