TNAG-1958-FCO40-2787-Future-of-Hong-Kong-Daya-Bay-nuclear-power-plant-1989 — Page 18

RESTRICTED

RESTRICTED

FM PEKING

TO PRIORITY DEPARTMENT OF TRADE AND INDUSTRY

TELNO INDUS 72

OF 270137Z SEPTEMBER 89

AND TO PRIORITY BTC HONG KONG

FOR DAY, EM4.

YOUR INDUS 74: DAYA BAY.

59

175265 MDLIAN 3705

perch

HKC 166/1

Манадики

ente

А

1

SUMMARY.

·

1 THANK YOU FOR USEFUL BRIEFING IN TUR. COMMERCIAL COUNSELLOR, ACCOMPANIED BY CALDER AND BARNSLEY, VISITED THE DAYA BAY SITE ON

21 AND 22 SEPTEMBER. THEY HAD DISCUSSIONS WITH THE GUANGDONG NUCLEAR PROJECT JOINT VENTURE CORPORATION (GNPJVC) AND WITH GEC TURBINE GENERATORS (GECTG), BUT LITTLE NEW EMERGED. GNPJVC ARE STILL CRITICAL OF GEC EVEN THOUGH THE PROJECT GENERALLY IS ON SCHEDULE.

DETAIL.

2. AS YOU ARE DOUBTLESS AWARE, CHAPMAN'S VISIT FOLLOWED HARD ON THE HEELS OF THAT BY SIR ROBERT DAVIDSON, DEPUTY CHAIRMAN OF GEC ALSTHOM. AT A 2 HOUR MEETING WITH GNPJVC ON 21 SEPTEMBER, CK HO DESCRIBED SIR ROBERT'S VISIT AS POSITIVE AND CONSTRUCTIVE. GNPJVC WERE APPRECIATIVE OF GECTG'S SUPPORT THROUGHOUT THE SUMMER, AND FOR THE APPROPRIATE ADVICE FROM THE FCO AND OTHERS WHICH HAD

ENABLED THEM TO KEEP TO SCHEDULE DESPITE THE POLITICAL EVENTS ELSEWHERE IN CHINA. HO ALSO ACKNOWLEDGED THAT GECTG HAD TAKEN MEASURES TO RESOLVE MANY OUTSTANDING PROBLEMS, BUT THERE WAS NO ROOM FOR COMPLACENCY. NEW PROBLEMS WERE STILL ARISING (DETAILS IN MIFT). DAVY MORRIS, AS EXPECTED, CAME IN FOR A CONSIDERABLE AMOUNT OF FLAK FOR THE FAILURE OF THE ELECTRONIC CONTROLS ON THE TURBINE-

HALL CRANES, AS WELL AS ERRORS IN MANUFACTURE OF THE DRIVE GEAR- BOXES, AND LATE DELIVERY OF BOP CRANES. GNPJVC WERE CONCERNED THAT THESE CONTINUING PROBLEMS MIGHT JUST BE THE TIP OF AN ICEBERG. GEC TOP MANAGEMENT WOULD NEED TO WORK HARD TO RESTORE CONFIDENCE : GEC'S UNDOUBTED PAST ACHIEVEMENTS WERE ONE THING, BUT IT WAS FACTS ON THE DAYA BAY SITE THAT MATTERED. BOTH HO AND SHUM (WHO WAS ALSO PRESENT) EXPRESSED DISSATISFACTION WITH GECTG'S

MANAGEMENT STRUCTURE.

1

PAGE

RESTRICTED