TNAG-1958-FCO40-2787-Future-of-Hong-Kong-Daya-Bay-nuclear-power-plant-1989 — Page 108

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FROM BTC HONG KONG

TO ROUTINE DTI

TELNO OTTER 77

OF 24090OZ APRIL 89

AND TO ROUTINE FCO

INFO ROUTINE PEKING

HKC 166

16

002103

MDLIAN 5395

TOP COPY Q @ DIST ?

DAYA BAY

1. I HAVE REPORTED BY BAG A CONVERSATION WITH ALAN BROWN OF GEC WHO HAS BEEN TAKEN TO TASK BY THE GUANGDONG NUCLEAR POWER JOINT VENTURE COMPANY OVER WHAT THEY CONSIDER TO BE GEC'S POOR PERFORMANCE ON THE CONVENTIONAL ELEMENT OF THE POWER STATION.

2. SIR JACK CATER SPOKE TO HOLLOWAY ON 21 APRIL AND URGED THAT HMG SHOULD CONSIDER VERY CAREFULLY WHETHER ANYTHING COULD BE DONE TO RETRIEVE GEC'S REPUTATION AND AVOID ANY SOURING OF THE UK'S COMMERCIAL RELATIONS WITH THE CHINESE AUTHORITIES. SIR JACK SAID THE JOINT VENTURE COMPANY WOULD BE WRITING TO LORD YOUNG AND ALSO

PETER MORRISON THE MINISTER FOR ENERGY. HE THOUGHT THE HONG KONG GOVERNMENT ALSO (AS PARTNERS IN THE PROJECT) WOULD BE CONTACTING

THE FCO.

3. SIR JACK SAID THE MAIN PROBLEM WAS THE SLOW DELIVERY OF STEEL BY GEC'S SUB-CONTRACTOR, CLEVELAND BRIDGE. DOUBTLESS CLEVELAND BRIDGE HAD ITS OWN PROBLEMS BUT THERE WAS NO DISPOSITION ON THE SITE TO SHOW ANY SYMPATHY. BESIDE THE SLOW DELIVERY THE ENGINEERS WERE UNHAPPY OVER GEC'S ESCALATING ESTIMATES OF THE AMOUNT OF STEEL THAT WOULD BE REQUIRED FOR A MODIFIED CONFIGURATION OF SOME OF THE STEAM PIPING. THE ESTIMATE HAD RISEN FROM 400 TONS TO 700 TONS. SIR JACK SAID THESE PROBLEMS WERE IN STARK CONTRAST TO THE PERFORMANCE OF THE FRENCH CONTRACTORS WHO WERE QUOTE ALMOST BORINGLY UNQUOTE UP TO SCHEDULE. (HOLLOWAY AND I WONDERED ON REFLECTION IF THE STEEL FOR THE ANTIWHIP RESTRAINTS WAS MEANT BUT I HAVE RETAINED THE WORDING OF HOLLOWAY'S DRAFT SO THAT YOU CAN OBTAIN CLARIFICATION IN LONDON)

4. SIR JACK SAID THERE WAS A FEELING WITHIN THE COMPANY THAT HMG SHOULD BE MORE ACTIVE IN MONITORING THE BRITISH PERFORMANCE. HE SAID THAT HE THOUGHT THERE WAS STILL A CHANCE TO RELIEVE THE BAD FEELING. GEC SEEMED TO BE TRYING HARD TO ACCELERATE THE SUPPLY OF STEEL BUT HE THOUGHT SOME SPECIAL ATTENTION BY HMG WAS NECESSARY.

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