FCS/90/024
1/2
Mc Saul WV2
7/2
ہے بن کر
HKD+N'S
$
Morsdaggay / Palme Maude
Miss
Mr
Holroyd for
Pa, CONFIDENTIAL
SECRETARY OF STATE FOR TRADE AND INDUSTRY
PS / PUS
Mi Gillmore nu miLaren
пи
Mr Lichiatzen
FED
DK 3%
་
Hkc 121/2
RECEIVED (
2 7 FEB 1990
DESK OFFICE
INDEX
STRY
1. Thank you for sending a copy of your letter of 29 January to John Major inviting my views on the principle and timing of Cable and Wireless's plans to dispose of a 20% stake in Hong Kong Telecommunications Ltd to CITIC.
2.
News of the proposed sale has been welcomed in Hong Kong as a positive sign of CITIC's interest in Hong Kong's telecommunications industry and confidence in Hong Kong's economy in general. Cable and Wireless has undertaken several joint venture projects with China over the past few years, with more and more telecommunications links being established between Hong Kong and Southern China.
3. We have been appealing to the Chinese to bolster confidence in Hong Kong and CITIC's investment in Hong Kong Telco can be seen in that light, though their decision was no doubt taken primarily on commercial grounds. I am therefore content for you to give your approval to Cable and Wireless for the sale to proceed.
CONFIDENTIAL