TNAG-1958-FCO40-2787-Future-of-Hong-Kong-Daya-Bay-nuclear-power-plant-1989 — Page 106

RESTRICTED COMMERCIAL IN CONFIDENCE

014001 MDHOAN 9926

RESTRICTED

COMMERCIAL IN CONFIDENCE

FM DTI

TO IMMEDIATE BTC HONG KONG TELNO INDUS 51

OF 2618OOZ APRIL 89

HKC 166

21/4

Mr Foran

Mess Jacor

FOR HEAP FROM DAY EM4

TEXT OF LETTER FROM GNPJVC TO LORD YOUNG

18 APRIL 89. SIGNED BY WANG QUAN QUO, CHAIRMAN AND W.F. STONES, FIRST DEPUTY CHAIRMAN.

MONITORING OF THE CONVENTIONAL ISLAND SUPPLY CONTRACT

FOR GUANGDONG NUCLEAR POWER STATION

ente

W/24/2

WE WISH TO ADVISE YOU THAT THERE HAVE BEEN CONTINUOUS INCIDENTS

OF DELAYS OR UNSATISFACTORY QUALITY OBSERVATIONS IN THE SUPPLY

OF EQUIPMENT, PARTS, AND DRAWINGS IN THE PAST FEW MONTHS UNDER THE CONVENTIONAL ISLAND SUPPLY CONTRACT UNDERTAKEN BY THE BRITISH

GENERAL ELECTRIC COMPANY (GEC) FOR THE GUANGDONG NUCLEAR POWER

STATION (GNPS). THE SUPPLY OF STEAM TUBE ANTI-WHIP RESTRAINTS

FOR UNIT 1 AND UNIT 2 AND STRUCTURAL STEELWORKS FOR

UNIT 2 TURBINE BUILDING, ORIGINALLY SCHEDULED TO BE COMPLETED IN THE FIRST HALF THIS YEAR, WOULD BE DELAYED UP TO 3 MONTHS IN THEIR LATEST SCHEDULE. THIS WAS BECAUSE GEC'S SUB-CONTRACTOR CLEVELAND

BRIDGE HAD NOT STRICTLY IMPLEMENTED THE SUB-CONTRACT AND GEC

HAD NOT EFFECTIVELY MANAGED AND CONTROLLED THEIR SUB-CONTRACTOR.

FURTHERMORE EVEN SUCH LATE SCHEDULE COULD NOT BE CONFIRMED.

THIS HAS RESULTED IN DIFFICULTIES IN OUR SITE CONSTRUCTION AND

CONSIDERABLY HIGHER COST. WE HAVE PURSUED THIS MATTER WITH GEC FOR 3 TO 4 MONTHS, BUT STILL UNSOLVED. MR.A. BROWN, MANAGING DIRECTOR OF GEC TURBINE GENERATORS LTD. CAME TO SHENZHEN AND

DISCUSSED WITH US YESTERDAY AFTERNOON, BUT REGRETTABLY HE GAVE US NO FIRM COMMITMENT. WE AS PARTNERS OF THE JOINT VENTURE ARE VERY CONCERNED ABOUT THE PROGRESS MADE AND THE PROBLEMS ENCOUNTERED

BY GEC IN THE IMPLEMENTATION OF ITS CONTRACT.

THIS SUPPLY CONTRACT FOR GNPS WAS SIGNED UNDER THE CLOSE SUPERVISION

AND CO-OPERATION OF BOTH THE BRITISH AND CHINESE GOVERNMENTS.

PRIOR TO SIGNATURE OF THE CONTRACT IN 1986, MR LEON BRITTAN, THE THEN BRITISH SECRETARTY OF STATE FOR TRADE AND INDUSTRY, WROTE A LETTER TO THE THEN DEPUTY PREMIER LI PENG, MAKING A COMMITMENT THAT

PAGE

1

RESTRICTED COMMERCIAL IN CONFIDENCE