CONFIDENTIAL
XCC(91)127
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The policy to be set out in the White Paper is likely to represent a significant, and possibly controversial change to the current policy, and will put in place a regulatory framework which will last well beyond 1997. In practical terms, it will have a significant impact on Telco's franchise, and may lead to the award of new telecommunication licences extending beyond 1997. We therefore consider that the Chinese side of the JLG should be informed of our intentions as early as possible and be invited to comment.
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We propose to offer the Chinese side a briefing shortly after Members have advised on the recommendations in this memorandum. We would describe to them the current telecommunications policy and system, the background to this exercise, and some of the proposals we are considering. We would point out that because the issues are difficult and affect many areas of the community, we intend to have a period of public consultation before arriving at a conclusion. We would advise them of the very tight timetable we are working to, and would assure them that any comments they made either before or after publication of the consultation document would be taken into account in preparing the White Paper.
FINANCIAL AND STAFFING IMPLICATIONS
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For the purposes of drafting the consultative document and White Paper and related work in connection with the consultative exercise a supernumerary post of Administrative Officer Staff Grade C has been created in Economic Services Branch.
PUBLIC REACTION
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The public are aware of and have shown keen interest in the matter. Proposals in this memorandum are expected to give rise to lively public discussion involving local consortia, businessmen, academics, pressure/ political groups, Legislative Council Members, etc. The long delay in announcing a policy on telecommunications has caused increasing restlessless in some quarters. Some political groups have shown an increasing interest in this area during the run up to the elections. We expect the public to welcome the opportunity to comment on our preliminary proposals. In general, the business sector should strongly support proposals which may result in a reduction of international telephone charges and create, through competition, a more customer-orientated market. On the other hand, there