1.
QATAR
CONFIDENTIAL
Caw claim destabilisation of its position, by a BT consultancy report which recommended ending C&W's franchise which formally expired in 1977 but has been renewed on a yearly basis. BT won the consultancy in competition with the Swedish PTT.. The report was commissioned by political opponents of C&W who appear to have the upper hand in the Qatar Government. There appears to be nothing in it for BT bar the completed consultancy contract, although it may be hoping for a management contract if the Qataris take over. The position in Qatar has been unstable for some time. Sir Eric Sharp had an audience with the Amir on 27 October in an attempt to retrieve the situation and the Prince of Wales has since put in a good word. The Post have reported that for C&W some hopeful signs have emerged, not least because of new proposals from C&W (70/30 sharing of profits, higher target for Qatarisation and a new training package).
2.
BELIZE
C&W have been operating in Belize for 10 years and their licence is due for renewal at the end of 1987. BT's Teleconsult, acting as advisers to the Belize Telecommunications Authority (BTA), has recommended a restructuring of arrangements, proposing specifically that all telecommunications assets be taken over by BTA and the resulting company privatised, this company
100% Government owned until March 1987 and thereafter in partnership with a major sponsoring telecommunications company, Government having ultimate control via a special share with veto powers. C&W are concerned that BT should recommend a form of "social ownership". The FCO were approached by C&W in September, but have declined to become involved.
3.
JAPAN
Japan intends to introduce competition
to introduce competition in international telecommunications by licensing a second operator alongside KDD, the present monopolist. Two rival consortia are trying to obtain this licence. BT attempted to join one of them but without success. C&W are at the forefront of the other consortium. There has been no decision yet by the Japanese Government, which very recently told the Secretary of State that it considered the level of C&W's proposed participation too high. Discussions are continuing and there is intense manoeuvring behind the scenes. C&W are now alleging that BT are positively arguing against their interests not just promoting its own.
4.
HONG KONG
C&W have recently expressed concern to the Secretary about BT's bid for the broadband cable franchise, BT has teamed up with a powerful local company. C&W are working with GEC. C&W's concern appears unjustifiable, since it appears the Hong Kong Government intends to offer at least two franchises, one almost certainly going to C&W/GEC and the other to BT and its partner.
5.
SOLOMON ISLANDS
A recent BT News Release reports the signing of a MOU on the establishment of a joint venture company to run national and international telecommunications services under a 15 year licence. National services are presently operated by the Government