Reference..
ALJI
M
File: MMF/393/1
Mr Stone HKD
HK TELECOMMS POLICY: CABLE & WIRELESS
RELE
Ricketts The
For Fummers
Ра
11/0
36
Imm
79/10
1.
Thank you for copying to us your minute of October 4 to Mr Burns on HK telecommunications policy. We support the line put forward of non-interference in HKG telecomms policy, even if UK interests such as Cable and Wireless are involved, and would not wish to disagree with your recommendation to the Secretary of State of not writing to the Governor of Hong Kong. Should the matter resurface you might find the comments below of some use.
2.
It is worth noting that the recent EXCO decision to a) negotiate with HK Telecomm to reduce prices in line with costs. and b) introduce additional competition into international and domestic services in a manner equitable to HK Telecomm will not be warmly received by either potential new entrants or HK Telecomm/ Cable & Wireless. It is questionable how much real competition could be introduced 'in an equitable manner' without unilaterally breaking the franchise agreement.
3.
There is one area which could still be the subject of a non- interfering type letter to the Governor. In his letter, Lord Young was keen to get assurances that when the franchises came up for renewal (domestic telephones in 1995), most likely in a more deregulated environment, the playing field was level. As we have sought a level pitch for UK construction companies in PADS there seems no reason not to put in a marker here.
CODE 18-77
CE Lane
Economic Advisers WH 426b 270 2727
8 October 1991
RESTRICTED