CONFIDENTIAL
4. Most of the cases approved by the Advisory Group on
5 March were quite straiy.tform:ma. The only difficult
cases were:
1
•
(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