CONFIDENTIAL
XCC(91)127
35
We have already come under pressure from a number of sources - industry, academic circles, OMELCO and the Consumer Council - to consult widely on these issues and believe a public consultation exercise is the best way of ensuring that all interested parties have an opportunity to put forward their views. The consultative process should also ensure that our preliminary proposals are tested against the experience and expertise of all the main telecommunications players.
36
Such a consultation exercise could be carried out either on the basis of the BAH consultancy report or on the basis of a separately prepared consultative document setting out the Administration's preliminary proposals. We are not in favour of the first alternative. Using the BAH report with its strong bias in favour of early termination of the exclusive franchises would tend to focus debate on this issue. This would probably mitigate against a balanced discussion of what we consider to be the more practicable proposals for change. Accordingly, we recommend that there be a consultation exercise based on a document which sets out the Administration's preliminary recommendations on regulatory change as outlined in paragraphs 23 - 26 of this memorandum. Members approval of the draft consultative document will be sought before it is issued.
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Following completion of the consultation period, which we envisage lasting two months, and detailed negotiations with HK Telecom, we propose to draft a White Paper on telecommunications policy setting out the Government's final decisions on the regulatory measures to be adopted. The draft White Paper would of course be submitted to this Council for approval.
China Angle
38
At JLG XI (December 1988), we gave the Chinese side of the Joint Liaison Group (JLG) an undertaking to inform them of major policy initiatives and decisions which were likely to be controversial either locally or internationally. More recently, we have undertaken to consult them on the award or renewal of major franchises (to include certain types of contracts and licences) if the franchise concerned would extend beyond 1997.