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turn would require the Government of Hong Kong to be able to assure itself as to
the safety of the reactor, the continuity of supply and costs of electricity to be
purchased before allowing CLP to enter into an off-take agreement.
However our
The decisions to proceed and on the
position is less strong than it appears.
choice of reactor will be taken by the PRC. As CLP have prepared the feasibility
study jointly with GPC it would be difficult for them to reject a competitor's
commercially sound and technically competent package which excluded UK participation.
Equally the Government of Hong Kong would find it difficult to object to CLP pur-
chasing power from such a source providing they were satisfied as to the safety of
the station as it might affect Hong Kong and its reliability as a source of
electricity supply.
6. Thus the Hong Kong connection, while helpful, does not of itself guarantee
UK participation. Equally GEC have limited relevant technical experience from
which to offer high speed 900 MW turbine generators, but do have considerable
experience of low speed 900 MW sets in Korea. Neither does the UK have any
experience in building or operating complete PWR nuclear stations.
Both Framatome
and Westinghouse have the ability to offer complete stations based on proven
designs. The French appear to have established a favoured position in Peking
following an agreement in principle reached during the visit of the French
President that France would be the preferred supplier of China's first nuclear
station.
7. Despite these drawbacks there is still a good prospect that the UK can
obtain a central role in this project. The French and Americans probably over-
value our influence in Hong Kong. Secondly the UK does have a considerable
breadth of expertise in organising and regulating a nuclear industry and in
supplying it with components. On a realistic timescale for the Guangdong Project
it appears possible for the UK to arrange for the provision of the required expertise
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