This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/uk-news/2016/aug/11/energy-specialists-raise-concerns-on-chinese-hinkley-involvement

The article has changed 4 times. There is an RSS feed of changes available.

Version 1 Version 2
Energy specialists raise concerns about Chinese Hinkley involvement Energy specialists raise concerns about Chinese Hinkley involvement
(35 minutes later)
Further concerns have been raised over China’s involvement in the £18bn Hinkley Point nuclear power project after it emerged that the state-owned company backing the plant is facing espionage charges in the US.Further concerns have been raised over China’s involvement in the £18bn Hinkley Point nuclear power project after it emerged that the state-owned company backing the plant is facing espionage charges in the US.
The chair of the parliamentary energy and climate change committee said the allegations raised serious questions about the corporate integrity of China General Nuclear Power (CGN) and must be part of the government’s current review of Hinkley.The chair of the parliamentary energy and climate change committee said the allegations raised serious questions about the corporate integrity of China General Nuclear Power (CGN) and must be part of the government’s current review of Hinkley.
Related: The Guardian view on doing business with China: not a question of whether, but when and how | EditorialRelated: The Guardian view on doing business with China: not a question of whether, but when and how | Editorial
Warning that there are now “grave concerns” about CGN’s 33% stake in Hinkley, Angus MacNeil MP said: “It does raise questions about how honourable the company is and whether it could cut corners on construction methods and issues like that.”Warning that there are now “grave concerns” about CGN’s 33% stake in Hinkley, Angus MacNeil MP said: “It does raise questions about how honourable the company is and whether it could cut corners on construction methods and issues like that.”
CGN has been named as a defendant in legal papers filed by the US authorities in a Tennessee district court, where the accused face charges of involvement in a conspiracy to steal nuclear secrets in order to help speed up China’s own nuclear power programme.CGN has been named as a defendant in legal papers filed by the US authorities in a Tennessee district court, where the accused face charges of involvement in a conspiracy to steal nuclear secrets in order to help speed up China’s own nuclear power programme.
Another defendant is a 66-year-old naturalised US citizen called Szuhsiung “Allen” Ho, also known as Allen Ho. A senior adviser to CGN, Ho is scheduled to appear next week accused of trying to recruit US atomic experts to gather nuclear technology secrets. Details of the charges emerged as Australia blocked the sale of a power grid company to a Chinese firm on security grounds.Another defendant is a 66-year-old naturalised US citizen called Szuhsiung “Allen” Ho, also known as Allen Ho. A senior adviser to CGN, Ho is scheduled to appear next week accused of trying to recruit US atomic experts to gather nuclear technology secrets. Details of the charges emerged as Australia blocked the sale of a power grid company to a Chinese firm on security grounds.
One energy expert urged Theresa May to immediately pull the plug on the Somerset power project, saying it was the final nail in a doomed scheme already under threat after the prime minister ordered a review of the plant last month. One energy expert urged Theresa May to immediately pull the plug on the Somerset power project, saying it was the final nail in a scheme already under threat after the prime minister ordered a review of the plant last month.
Paul Dorfman, a senior research fellow at the energy institute at University College London and former government adviser, said the decision to undertake a review, on the basis of security concerns about China’s involvement, had already upset Beijing. Paul Dorfman, a senior research fellow at the energy institute at University College London and a former government adviser, said the decision to undertake a review, on the basis of security concerns about China’s involvement, had already upset Beijing.
Referring to the OECD club of major economies, he said: “No other OECD country would let China into its critical nuclear infrastructure, given its history of nuclear weapon proliferation. May has already taken the diplomatic ‘hit’ for this, so what’s she got to lose?” Referring to the Organisation for Economic Cooperation and Development, he said: “No other OECD country would let China into its critical nuclear infrastructure, given its history of nuclear weapon proliferation. May has already taken the diplomatic hit for this, so what’s she got to lose?”
Dorfman said a convenient excuse for pulling out of Hinkley could be supplied by problems with the plant’s main backer, France’s EDF, which is committed to using European Pressurised Reactor technology that is running over budget at sites in France and Finland. Dorfman said a convenient excuse for pulling out of Hinkley could be supplied by problems with the plant’s main backer, France’s EDF, which is committed to using European pressurised reactor (EPR) technology that is running over budget at sites in France and Finland.
“If government wanted to, it could avoid taking China to task on this by reframing the problem in the context of the failed French EPR reactor, which is three times over-cost and over-time where it’s being built in Finland and France.”“If government wanted to, it could avoid taking China to task on this by reframing the problem in the context of the failed French EPR reactor, which is three times over-cost and over-time where it’s being built in Finland and France.”
Energy industry sources also raised questions over how much the former prime minister and chancellor knew about the CGN case in the US. One source said the Tennessee case had been known about in security circles for nearly a year because elements of it had been in the public domain but not highlighted by media.Energy industry sources also raised questions over how much the former prime minister and chancellor knew about the CGN case in the US. One source said the Tennessee case had been known about in security circles for nearly a year because elements of it had been in the public domain but not highlighted by media.
“It is inconceivable that George Osborne and David Cameron had not been told about the case by the security forces. May – as former Home Secretary – was perhaps willing to listen more intently to what they (MI5) were telling her,” said one. “It is inconceivable that George Osborne and David Cameron had not been told about the case by the security forces. May – as former home secretary – was perhaps willing to listen more intently to what they (MI5) were telling her,” said one.
CGN said it could not immediately comment on the scandal but promised it would provide a written statement. Ho’s attorney, Peter Zeidenberg, said his client had been openly engaged in commercial activity involving non-classified information.CGN said it could not immediately comment on the scandal but promised it would provide a written statement. Ho’s attorney, Peter Zeidenberg, said his client had been openly engaged in commercial activity involving non-classified information.
The UK’s prime minister’s office and department of business, energy and industrial strategy (BEIS) also declined to discuss the issue or its implications. “This is a matter for the American authorities. It would be inappropriate for us to comment on a live court case,” explained a BEIS spokesperson. The UK’s prime minister’s office and the Department of Business, Energy and Industrial Strategy (BEIS) also declined to discuss the issue or its implications. “This is a matter for the American authorities. It would be inappropriate for us to comment on a live court case,” said a BEIS spokesperson.
Hinkley was meant to be a key part of George Osborne’s bid to usher in a “golden decade” of closer trade relations with China. Final details of the deal were announced as the former Chancellor toured the country last year. Hinkley was meant to be a central part of George Osborne’s bid to usher in a “golden decade” of closer trade relations with China. Final details of the deal were announced as the former chancellor toured the country last year.
In addition to potential security concerns, some in Whitehall had always harboured doubts about whether the vast reactor project was worth the generous subsidies that the government had to pledge to get an investment agreement. In addition to potential security concerns, some in Whitehall had always harboured doubts about whether the vast reactor project was worth the generous subsidies that the government had had to pledge to get an investment agreement.
But Osborne was known to be so attached to the project that objections were pushed aside. The former chancellor, who was sacked by May last month in one of her first acts as prime minister, could not be reached for comment yesterday.
Greg Clark, the new energy secretary, is known to be keen to scrutinise the financial details before formal approval is given. Downing Street has said a decision will be made next month while the Chinese have already made clear
Related: Hinkley Point C: case against CGN has the feel of a modern spy thrillerRelated: Hinkley Point C: case against CGN has the feel of a modern spy thriller
But Osborne was known to be so attached to the project that objections were pushed aside. The former chancellor, who was sacked by May last month in one of her first acts as prime minister, could not be reached for comment yesterday.
Greg Clark, the new energy secretary, is known to be keen to scrutinise the financial details before formal approval is given. Downing Street has said a decision will be made next month while the Chinese have already made clear their irritation with the delay.
Barry Gardiner, shadow energy secretary, expressed concern about the court case being used by ministers as an excuse for dumping Hinkley. “There are many reasons to criticise the Hinkley C deal: the vast cost; the long subsidy lock-in while other technologies fall in price and the technical feasibility of the project ever being built. These are genuine risks the government ought to have addressed two years ago.Barry Gardiner, shadow energy secretary, expressed concern about the court case being used by ministers as an excuse for dumping Hinkley. “There are many reasons to criticise the Hinkley C deal: the vast cost; the long subsidy lock-in while other technologies fall in price and the technical feasibility of the project ever being built. These are genuine risks the government ought to have addressed two years ago.
“The government says it wants to boost international trade. If the government held off the deal because of these allegations, they have jeopardised a relationship with a key future trade partner at a time when we need to be creating new friends and forging new trade alliances.”“The government says it wants to boost international trade. If the government held off the deal because of these allegations, they have jeopardised a relationship with a key future trade partner at a time when we need to be creating new friends and forging new trade alliances.”