TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 173

6.

7.

CHINA LIGHT & POWER COMPANY, LIMITED

What we have been able to establish at this preliminary stage' is that basically it is a feasible proposition to build a Nuclear Power Station in Guangdong Province to supply electricity to that province and to Hong Kong, further that such a project is viable and would be of benefit to both areas. However, there is still a great deal of work to be done before we can proceed any further.

As a start towards implementation we must

-:

CONTINUATION

a.

b.

a.

1.

9-

h.

1.

Have official confirmation that the PRC will support the project.

Know the regulations applicable to a nuclear power station to be built in China and in particular, the requirements of the PRC regarding how the storage reprocessing and re-enrichment of the spent fuel be dealt with.

Develop close contact with the nuclear administrative authority which will be responsible for critically examining the proposed safety standards for the power station and for issuing the necessary licence to operate.

Know whether the risk involved can be covered by insurance and to what extent.

Know the attitude of the UK Government towards this project and to what extent the UK is willing to provide expertise and finance.

Know the attitude of the Hong Kong Government :-

1.

ii.

Towards the project politically and econotically.

To the purchase of large quantities of power from a nuclear power station in Guangdong Province, a contingency not provided for in the present Scheme of Control which governs the operation of CIP as an electricity supply company.

Know the attitude and degree of support of the Government or Governments supplying the nuclear and conventional islands.

Cognisance must also be taken of the possible objections of the Hong Kong public to the environmental aspects of siting a nuclear power station in Guangdong Province relatively close to a city of 6 million people.

Know that the Bank of China will guarantee all loans both for foreign. and local content to finance the project to completion. Without this guarantee it will, in my opinion, be impossible to raise the 90% loan requirement recomended in the feasibility report.

It must be appreciated that the political and financial implications of these questions make it clear that the answers lie beyond our capabilities and can only be dealt with on a Government to Govembent basis.

Yours sincerely,

Chachoong,

Lawrence Kadoorie