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for us to press the Hong Kong Government not to proceed with the partial liberalisation of telecommunications they have

in mind, given HMG's policies on deregulation in this area.

The Secretary of State could however mention to the

Governor when they meet on 13 October the important benefit to Britain of C & W's operations in Hong Kong, and the need for equitable treatment of them in any liberalisation

programme.

meeting.

5.

I will include a note in the briefing for that

As requested, the note also deals with cable and

subscription television. Lord Young has not raised this subject with us. The situation is frankly still confused.

In 1989 Hong Kong Cable Communications Ltd was given a

franchise to operate a new subscription cable tv service,

linked to the right to install a second telecommunications

network (presumably for use only after Telecom's franchise expires in 1995). HKCC has since collapsed and the HKG are

now considering the terms of a new franchise which would not

necessarily include a link to the provision of a second telecommunications network. Meanwhile Hutchinson have begun broadcasting two satellite television channels and will be

transmitting BBC World Service TV from mid-November. There

are no particular Cable & Wireless interests at stake here.

BODAFM/3

Richden

PF Ricketts

мой

A very clear note and bangled sulyeit. Zaquee with the гаде advice.

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