CONFIDENTIAL
VISIT BY MR PETER BLAKER MP TO HONG KONG: 23-25 SEPTEMBER 1979
CABLE AND WIRELESS
Points to Make
1.
(Defensive and only if matter is raised by the Governor of
Hong Kong or his Financial Secretary, Mr Haddon-Cave.) In strict
confidence, HMG is continuing to give urgent consideration to the
sale of shares in Cable and Wireless. If there is a decision in
principle to go ahead, it is expected that DOI will shortly wish
to take up the Governor's offer to send a team to UK for further
detailed discussions.
2. (If Cable and Wireless is raised by anyone else.) HMG is
reviewing its public assets generally, but there are at the
moment no plans to sell shares in Cable and Wireless.
Essential Facts
3. Cable and Wireless is wholly owned by the Governoteat. It oper-
ates almost entirely overseas in international communications
services under franchises granted by the governments of countries
for which the services are provided. The two most profitable
franchises are Hong Kong and Bahrain, the first of which is the
major element in the company's profitability.
4. HMG is at present considering the sale of shares in Cable and
Wireless. Two merchant banks were consulted independently by the
Secretary of State for Industry about the possible sale of shares
and advised that this would be feasible but only after the satis-
factory negotiation of an extension to the existing Hong Kong
concession (and preferably also after the renewal of the important
concession in Bahrain).
CONFIDENTIAL
15.