RESTRICTED
165
117325
MDHIAN 3024
RESTRICTED
FM WASHINGTON
TO IMMEDIATE FCO
TELNO 1868
OF 121946Z JULY 89
HKB 020/14.
INFO PRIORITY HONG KONG, PEKING
Entu+ PA
OUR TELNO 1857 AND TELECON NEVE/MCLEARY: CABLE AND WIRELESS INTEREST IN ASIASAT
1.
OUR CONTACTS AT STATE TOLD US TODAY (12 JULY) THAT EAGLEBURGER HAS NOW DECIDED TO APPROVE THE ASIASAT PROJECT BUT NOT TO ANNOUNCE THE DECISION UNTIL THE WEEK OF 31 JULY. THE REASON FOR THIS DELAY IS TO MINIMIZE THE RISK OF CONGRESSIONAL CRITICISM OF THE DECISION (BOTH THE SENATE AND HOUSE OF REPRESENTATIVES ARE DUE TO GO INTO RECESS AT
THE END OF THAT WEEK).
2 =
OUR CONTACTS HAVE ALSO TOLD US THAT THE DECISION IS CONTINGENT UPON THERE BEING NO ADVERSE DEVELOPMENTS IN CHINA AND NO QUOTE OVERWHELMING POLITICAL OPPOSITION UNQUOTE TO THE PROJECT IN THE INVERVENING PERIOD. THEY THINK THAT IT MIGHT STILL BE HELPFUL FOR US TO MAKE OUR VIEWS CLEAR TO
EAGLEBURGER TO STIFFEN HIS RESOLVE.
3.
YOU SHOULD BE AWARE THAT CABLE AND WIRELESS'S LOCAL REPRESENTATIVES HAVE TOLD STATE THAT A MESSAGE IS ON ITS WAY. THEY HAVE ALSO BEEN IN TOUCH WITH THIS EMBASSY AND WE HAVE TOLD THEM SIMPLY THAT THE MATTER IS STILL UNDER CONSIDERATION IN LONDON. WE SUGGEST THAT, IN ORDER TO PROTECT STATE'S CONFIDENCE, CABLE AND WIRELESS SHOULD NOW BE TOLD ONLY THAT WE UNDERSTAND THAT A DECISION HAS BEEN POSTPONED UNTIL THE END OF THE MONTH AND THAT, IF THEY WANT FURTHER INFORMATION, THEY SHOULD SPEAK TO STATE.
4.
THE AMBASSADOR HAS A BREAKFAST MEETING WITH EAGLEBURGER
PROVISIONALLY SCHEDULED FOR 18 JULY (BUT WHICH COULD BE BROUGHT FORWARD AT SHORT NOTICE TO LUNCH ON 17 JULY). THIS
WOULD PROVIDE AN IDEAL OPPORTUNITY TO RAISE THE ISSUE.
GRATEFUL THEREFORE FOR INSTRUCTIONS IF POSSIBLE BY 14180OZ. 5. FCO PLEASE ADVANCE TO MCLEARY (FED), WETTON (SEND) AND REEVE (COMED) AND PASS TO PRIDDLE (TP DIVISION) AND HAGESTADT, HALL AND BESTON (OT2) IN THE DTI.
FALL
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