Mr Hum HKD

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From:

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GN Smith, TRED

Date: 11 June 1987

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Mr McLaren

CABLE AND WIRELESS/BRITISH TELECOM: HONG KONG

1. I have seen Mr McLaren's minute of 18 June to you about rivalry between C&W and BT in connection with Hong Kong's second telecommunications network.

2.

The PUS dined with Sir Eric Sharpe of C&W on 8 June. In preparing briefing for the PUS we obtained the attached /background material from the DTI on the current state of

play in the DTI's efforts to develop a better mutual understanding between the two companies over their overseas operations. In the event, Sir Eric did not raise this particular topic with the PUS.

3. Although the DTI's efforts seem to have produced what appears to be a helpful response from BT, the 'hotline' which was to be set up between the two companies does not seem to be working; clearly C&W/BT rivalry is as fierce as ever. Much of the difficulty between the companies is, I believe, due to the personal antipathy between Sir Eric Sharpe and Sir George Jefferson, Chairman of BT.

4. The FCO attitude towards C&W and BT must be seen to be even handed. It is certainly for DTI to take the lead in knocking heads together at this end, though I would hope that Heads of Mission would do their best to encourage dialogue between the companies whenever the rivalry in any particular market looks like leading to a loss of business or to be damaging to UK interests as a whole.

11 June 1987

Neil Shit. I

GN Smith

Trade Relations and Exports Department WH406 270 2568

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