10 December 1993

BY FAX

COMMERCIAL IN CONFIDENCE

Ms Teresa Tse

Trade and Industry Branch Government Secretariat

Lower Albert Road

Hong Kong

Dear Ms Tse,

HVB 12/10

08 FEB 1994

BIEN ET

Foreign & Commonwealth

Office

London SWIA 2AH

Telephone: 071270-2653

US ANTI-TRUST NOTIFICATION.

1. I attach a notification from the US Embassy which gives notice of an investigation by the Antitrust Division of the Department of Justice into allegations of monopolisation and restraint of trade made against Microsoft Corporation of Washington State.

2. The notification is a little unusual since there is no direct connection to the United Kingdom. The Department of Justice has, however, raised the possibility that it might seek voluntary evidence from VTECH, a company incorporated in Hong Kong. Although it is not specifically stated, the Department of Trade and Industry, to whom the notification was sent, have assumed that VTECH is a third party competitor of the company under investigation.

3. As there is no suggestion of any investigation of VTECH itself, the Department of Trade and Industry do not anticipate any difficulties with this case. However, it would be very helpful if you could confirm that VTECH is not connected to the US company.

4. The Department of Trade and Industry have offered to write to VTECH to inform them of the United Kingdom's standard advice in respect of cooperating with such requests. Subject to your agreement, I propose to accept their offer.

Tse.Dec10

COMMERCIAL IN CONFIDENCE

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