- 2

2.

China

2.1

Description

Cable and Wireless plc have played possibly the leading role of all

telecommunications companies in the development of

of China's domestic communications facilities. The following is a summary of the major activities:

Cost to C&W

1979-1985

1983

1983

1983

Semi-automatic Direct Dialling in Guangdong: Provision to Guangdong Provincial Telecommuni- cations Bureau (GPTB) of equipment to enable semi-automatic dialling from Guangzhou and Shenzhen to Hong Kong, in advance of IDD being available.

East-West Guangdong Microwave System: Soft loan assistance to GPTB in construction of a 960 channel microwave system between Haikou and Shantou via Guangzhou.

Huaying Nanhai Oil Telecommunication Service Co. Ltd.:

HK$700,000

US$2.5 million

US$3.43 million

49% equity in this Sino-British joint venture providing a dedicated telecommunications network for oil exploration activities in the South China Sea.

SHENDA Telephone Co. Ltd:

49% equity in this Sino-British joint venture which provides the local telephone service in the Shenzhen Special Economic Zone.

Guangzhou-Shenzhen-Hongkong Microwave:

RMB 9.8 million

1983

HK$20 million

Meeting the cost of the Guangzhou-Shenzhen section of this new 2,700 channel microwave system.

1983

Pearl Delta Digital Project:

US$4.7 million

Soft loan and technical assistance to GPTB in installation of digital telephone exchanges in Dongguan, Foshan and Zhongshan.

1984

HK$12 million

Guangzhou - Tandem Telephone Exchange: Provision of a tandem telephone exchange for Guangzhou to increase the number of destinations in and around Guangzhou with IDD access to Hong Kong.

1985 (continuing)

Satellite Developments in PRC: Discussions with PT Ministry and CBSC (satellite co-ordination body of PRC) on increasing satellite capacity for China both for domestic and international traffic.

A joint venture is under discussion for a small dish satellite data network (VSAT) covering

China and Hong Kong.

We also have ongoing discussions with other Ministries e.g.Railways, on nationwide private satellite networks.

There is potential for PRC involvement in a Regional Satellite consortium.

No investment yet, but invest- ment in VSAT proposal could be US$2-3 million.

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