TNAG-1507-FCO40-2065-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 87

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GRS 650

CONFIDENTIAL

FM HONG KONG

TO ROUTINE FCO

TELNO 3859

OF 18064OZ NOVEMBER 86

INFO ROUTINE PEKING

Confidential

166/1

HKK RECEIVED IN ALGISTẨY

1 8 NOV 1986

DESK OFFICZ”

INDEX

REGISTRY

Action Taken

OPY

Q DIST 7

YOUR TELNO 2604 AND PEKING TELNO 2084: DAYA BAY & THIRD PARTY NUCLEAR LIABILITY

WE AGREE WITH PEKING THAT CARE WILL BE NEEDED IN RAISING THIS ISSUE

WITH THE CHINESE. BUT OUR CONCERN SHOULD NOT COME AS A SURPRISE

TO THEM. AS WE ARE NOT CLEAR ON THE DETAILED GROUNDWORK PEKING

WOULD LIKE US TO INITIATE, OUR PREFERENCE IS TO PURSUE YOUR PROPOSAL

THAT THE INITIAL APPROACH SHOULD BE MADE BY HMA PEKING ALONG THE

LINES SUGGESTED IN TELNO 2604.

2. NOTWITHSTANDING THE FACT THAT THE LIKELIHOOD OF A SERIOUS

ACCIDENT AT DAYA BAY WILL PROBABLY TURN OUT TO BE EXTREMELY REMOTE,

AND THAT THE PARTIES INVOLVED WILL MAKE EVERY EFFORT TO MINIMISE

THE RISK, THE CHINESE ALREADY FULLY ACCEPT THAT NO ABSOLUTE GUARANTEE CAN BE GIVEN THAT A NUCLEAR ACCIDENT WILL NOT TAKE

PLACE. JI PENGFEI MADE THIS POINT TO THE GOVERNOR ON 1 SEPTEMBER

1986 (PARAGRAPH 6A OF TELNO 1574 FROM PEKING REFERS). IN THESE

CIRCUMSTANCES OUR APPROACH TO THEM SHOULD BE SEEN AS A

RESPONSIBLE ACT ON OUR PART TO ENSURE THAT THE INTERESTS OF THE

HONG KONG PEOPLE, WHO AFTER ALL WILL BE BUYING THE BULK OF THE POWER FROM THE STATION OVER THE FIRST 20 YEARS, ARE BEING PROPERLY LOOKED AFTER.

3. WHILE WE ARE UNAWARE OF ANY CHINESE DOMESTIC LEGISLATION, GUIDANCE ON HOW THE QUESTION OF THIRD PARTY NUCLEAR LIBAILITY SHOULD BE HANDLED WITHIN THE PRC WAS GIVEN TO THE MINISTRY OF NUCLEAR

INDUSTRY BY THE STATE COUNCIL IN A LETTER ISSUED ON 29 MARCH 1986.

A COPY OF THE LETTER AND ITS TRANSLATION IS BEING SENT TO YOU AND

PEKING BY BAG. IT WAS GIVEN TO US IN CONFIDENCE BY HKNIC.

4. IN ESSENCE, THE LETTER OF THE STATE COUNCIL PLACES ABSOLUTE

LIABILITY FOR ANY NUCLEAR DAMAGE ON THE OPERATOR OF THE POWER

STATION. IT ALSO LIMITS THE OPERATOR'S LIABILITY TO A MAXIMUM

AMOUNT OF RMB EIGHTEEN MILLION WITH THE STATE PROVIDING ADDITIONAL

FINANCIAL COMPENSATION UP TO A MAXIMUM AMOUNT OF RMB THREE HUNDRED

MILLION. IT IS NOT CLEAR WHETHER THE CHINESE HAVE ANY PLANS TO

INTRODUCE LEGISLATION TO EMOBDY THE PRINCIPLES SET OUT IN THE

Confidential

| LETTER.

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