CONFIDENTIAL

Most of the cases approved by the Advisory Group on 6 March were quite straightforward. The only difficult

4.

cases were:

(a) the Kowloon and Canton Railway Company (KCRC).

The KCRC, like the MTR, was originally rejected by the

Committee on the grounds that it was not perceived as a

British company.

But following the decision on 21 February to approve the MTR, the Committee decided that it could not

discriminate between the MTR and the KCRC and that the

latter's inclusion could be justified on the grounds of

British management and substantial imports from the UK; and

(b) Cavendish International Holdings Ltd.

Cavendish was reconsidered and approved in the light of its

privatisation on 5 February when it became a wholly owned

subsidiary of Hutchison Whampoa. This means that 3 out of

the 4 companies in the Li Ka Shing Group for which Hutchison

had claimed eligibility have now been approved (Hutchison

Whampoa, Hong Kong Electric and Cavendish International).

The exception is Cheung Kong Holdings, which was not reconsidered by the Advisory Group because no new information was supplied.

Rosalind Manda

RM Marsden (Miss)

FABAPW/2

CONFIDENTIAL

Алиби 15/3

Page 180Page 181

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