TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 174

Lyr Marten

COMMERCIAL IN CONFIDE: ICE

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THE DRAST MINUTES FOR SUBMISSION TO GPC PRIOR TO OUR

NEXT POKING

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v)

GPC/CLP will agree that GPC will hold 60% of the

shares in GNPC.

(LK) It gives me much pleasure to welcome you here today.

In due course I shall ask Mr. Stones, CLP's appointed Chairman of the Management Committee, to report to us on action taken by CLP since the issue of the Joint Feasibility Study Report for a nuclear power station in Guangdong Province.

2.

On the assumption that this project will be approved, I have given much thought as to what steps should be taken once we receive confirmation from the PRC and the Guangdong Provincial Government that they accept our joint report and wish to proceed with the project.

vi}

GPC will formally agree to sell a substantial

amount of the power they generate to CLP, and agree the conditions governing such sale.

·

vii) The Board of Directors of CLP will formally

agree to purchase a substantial amount of power

from GNPC and agree the conditions governing such

purchase..

viii)GPC/CLP will approve the formation of Hong Kong

Nuclear Investment Co. (KKNIC) a company registered in Hong Kong.

1x)

GPC/CLP will agree that BKNIC will hold 40% of the

sharus in GNPC.

3.

With this in mind, I have drawn up the following programme for consideration :

1}

iil

To avoid confusion, GPC/CLP should deal with each individual subject requiring agreement between them in separate and individual documents rather than one comprehensive document.

The financial implications must be clearly understood and agreed between all parties to this project before proceeding further.

iii) GPC/CLP must agree the names of the legal firms

and merchant bankers to be appointed to represent their interests and to draw up the necessary

agreements.

[V)

/CLP will agree to form the Guangdong Nuclear Tower Company (GNPC) a company registered in

Lon for the purpose of owning and operating a uclear power station to supply electricity both to Guangdong Province and for sale to llong Kong.

i

x)

x1}

GPC/CLP will agree that CLP will take up 10% of HKNIC in the form of Founders Shares, carrying 60% of the voting power in the company. The remaining 90% will be issued to other parties in the form of Ordinary Shares, carrying 40% of the voting power. The Founders Shares will revert to Ordinary Shares after a period of 25 years.

CPC/CLP will agree to the formation of Project Management Company (PMC) a company registered in Hong Kong.

xii) Shares in PMC will be owned as to 50% by GPC and

50% by CLP.

xiii)GNPC will contract with PMC to co-ordinate and

manage the project, to construct, commission and operate, for a period of 25 years, the generating facility to be owned by GNPC.