RESTRICTED

being Prime Minister Andreotti and a European Parliament delegation which recently visited Peking. Foreign Secretary also raised the issue with Foreign

Minister Qian in New York. Qian provided some

information on the names on the list of human rights

cases of concern and promised further details.

The

Lord Young may raise with the Prime Minister Cable & Wireless business interests in Hong Kong. Through their

subsidiary, Hong Kong Telecommunications, they have two

exclusive licences to run local telephone services

(expiring in 1995) and international communications

(expiring in 2006). Their Hong Kong operations

contribute about half of Cable and Wireless world-wide

group profits. The Hong Kong Government is currently reviewing its telecommunications policy and, in common

with many countries including the UK, is considering liberalisation and/or stricter control over profit

levels, and access to systems. No decisions have yet

been reached, but the Governor has given a personal

assurance to Lord Young that the Hong Kong Government

does not intend unilaterally to terminate the franchises

in advance of their expiry dates. If Lord Young asks that HMG keep an eye on this major contribution to the UK

balance of payments, the Prime Minister may wish to say

Hong Kong recognises the excellent service provided by Hong Kong Telecom but needs to keep policy abreast of

international developments.

RESTRICTED

Share This Page