TNAG-1507-FCO40-2065-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 97

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GRS 300

CONFIDENTIAL

FM PEKINC

TO IMMEDIATE FCO

TELNO 2084

OF 0400237 NOVEMBER 36

INFO IMMEDIATE HONG KONG

Confidential

HKK 166/1

RECEIVED IN AT

1 1 NOV 1986

DESK OFFICIA

Либралт

HONG KONG TELNO 3549 AND YOUR FERRO 2443 TO HONG KONG KEDAYA BAY? NUCLEAR THIRD PARTY LIABILITY

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 DE SMALL.

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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 PEASSURANCE 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 NUCLEAP INDUSTRY. HOWEVER THE DETAILED GROUND WORK COULD BEST BE DONE IN HONG KONG, WITH ECONOMIC SERVICES

BRANCH TAKING THE LEAD.

NONA REPORTED ON 25 OCTOBER THAT DAYA EAY 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 PEG ON WHICH TO HANG THEIR INITIAL

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

EVANS

PEHPAN 1099

GUANGDONG

[COPIES SENT TO NO 10 DOWNING STREET]

LIMITED

HKD

FED

NED

TRED

PUSD(MR CROWLEY)

WED

PS

PS/MR RENTON

PS/PUS

MR GILLMORE

MR WILSON

MR SLATER

ADDITIONAL DISTRIBUTION

GUANGDONG NUCLEAR

Confidential

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