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100604 MDLIAN 0118

HKC 191

PR 1998

FM MANILA

TO IMMEDIATE HONG KONG

TELNO 23

OF 150755Z APRIL 88

AND TO ROUTINE FCO

YOUR TELNO 22:

1.

2

CABLE AND WIRELESS/PLDT

IN CASE THE MATTER IS RAISED AT YOUR MEETING ON 17 APRIL WITH MRS AQUINO, YOU MAY LIKE TO HAVE THE FOLLOWING BACKGROUND WHICH I WAS ABOUT TO SEND WHEN TUR ARRIVED ON NATIONAL TELACOMMUNICATIONS COMMISSIONER (ALCUAZ) 'S DECISION TO INSTRUCT PLDT TO RESTORE THE STATUS QUO ANTE.

2.

I FINALLY SPOKE TO ALCUAZ ON THE LATE AFTERNOON OF 12 ARIL AND THEN HAD BREAKFAST WITH HIM AND BROOKER ON 13 APRIL. HE WAS AT FIRST RELUCTANT TO GET FURTHER INVOLVED. I SAID I HOPED HE WOULD ISSUE AN INSTRUCTION TO PLDT TO RESTORE THE STATUS QUO ANTE, AT LEAST UNTIL THE MEETING WITH CABLE AND WIRELESS ON 11 MAY: HE COULD THEN REQUIRE BOTH PARTIES TO REPORT TO HIM ON THE RESULTS OF THEIR NEGOTIATIONS. I ALSO POINTED OUT TO ALCUAW THAT, IF NOT RESOLVED, THIS ISSUE WOULD LIKELY BE RAISED BY THE GOVERNOR WHEN HE CALLED ON PRESIDENT AQUINO

OR EVEN BY THE FILIPINO MAIDS IN HONG KONG (EXCLAM).

3.

DESPITE THIS SUCCESSFUL, IF TEMPORARY, OUTCOME CABLE AND WIRELESS WILL HAVE TO THINK HARD BEFORE PAINTING PLDT FURTHER INTO A CORNER. THEY ARE AN EXTREMELY POWERFUL COMPANY, WITH CLOSE FAMILY TIES TO PRESIDENT AQUINO. I AM NOT CLEAR WHETHER THE BASIS FOR AN AGREEMENT EXISTS, BUT IF PUSH COMES TO SHOVE, THERE WILL BE SEVERE LIMITS ON THIS EMBASSY'S ABILITY TO INTERVENE EFFECTIVELY ON CABLE

AND WIRELESS' BEHALF.

4.

IN ANY EVENT IT WOULD, I THINK, NOT HARM IF YOU WERE TO SAY TO PRESIDENT AQUINO THAT YOU ARE GLAD THAT IT HAD BEEN POSSIBLE, THANKS TO THE INTERVENTION OF COMMISSIONER ALCUAZ, TO RESTORE THE STATUS QUO ANTE AND THAT WE HOPE THIS MATTER CAN BE RESOLVED AMICABLY ON A SENSIBLE/EQUITABLE BASIS, WITHOUT FURTHER RECOURSE TO UNILATERAL ACTION BY EITHER PARTY.

PRIESTLEY

YYYY

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