CODE 18-77

VT37TUE.347

DE 16

File

Reference..

TO:

MS JILL KNIGHT PS/MFT

FROM:

ALAN MURRAY

OT2/2D

KH 733

215 5412

cc PS/Secretary of State

PS/Mr Redwood

PS/Sir Peter Gregson

Mr Roberts

Mr Lane

Mr Meadway

Mr Salvidge Mr Phillips

Mr Johnson Mr Love

OT2

TP

TP2

EEP 1

OT2/2

Mr Anisfield Sp Ad

7 October 1991

CABLE AND WIRELESS INTERESTS IN HONG KONG

Your minute of 17 September reported the Minister's question about whether the FCO was aware of the Chinese Government's stake in Cable and Wireless' operation in Hong Kong.

Following an approach from the Chairman of Cable and Wireless in January 1990, the then Secretary of State consulted both FCO and Treasury on the principle and timing of Cable and Wireless' plans to dispose of a 20% stake in Hong Kong Telecommunications to China International Trust and Investment Corporation Hong Kong (Holdings) Ltd (CITIC). All parties were content. The Foreign Secretary commented that news of the proposed sale had been welcomed in Hong Kong as a positive sign of CITIC's interest in Hong Kong telecommunications industry and confidence in Hong Kong's economy in general.

ALAN MURRAY

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