CONFIDENTIAL

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RECEIVED IN REGISTRY

28 JAN 1893

Ma

REGISTRY

2

112543

MDLOAN 6527

on/? 012/4

CONFIDENTIAL

FM FCO

DESK OFFICER

TO PRIORITY HONG KONG

INDEX

PA

TELNO 75

OF 271730Z JAN 93

INFO PRIORITY PEKING, UKREP JLG HONG KONG INFO PRIORITY BTC HONG KONG, SEOUL

SEOUL FOR HUM CAUSS) VISITING

PERSONAL FOR PS/GH FROM RICKETTS, HKD

HONG KONG:

YOUNG

CALL ON THE SECRETARY OF STATE BY LORDS PRIOR AND

1. Lords Prior (GEC) and Young (Cable and Wireless) called on the Secretary of State on 27 January. Both had been the target of lobbying by Ambassador Ma.

2. Lord Young (on whose initiative the call had been arranged) said that Ma had recently been to see him and had said that it was about time the voice of the business community was heard in opposition to the Governor's proposals. He rather expected that Ma would be back in touch in a few weeks to ask what he had done. When David Li of East Asia Bank (a personal friend) had been in Peking recently, Qian had asked him why Lord Young had not spoken up in the House of Lords debate (the Secretary of State interjected that this was an outrageous comment and that Ambassador Ma's Lobbying went beyond what was reasonable).

3.

Lord Young continued that Cable and Wireless had good relations with Peking. Through Hong Kong Telecom they earned some POUNDS 300 million a year for the UK. Li Peng had told them that when the Chinese telephone system was opened up to foreign participation, they would be the first to benefit. The potential market was immense. So the stakes were very high.

4.

Lord Prior added that he too was worried. Ma was coming to GEC shortly. GEC had great opportunities in China. He was a personal friend and great admirer of the Governor. We needed to find a way to help the Governor modify one or two of his proposals. He was not sure what the right time to do this would

But the commercial opportunities were there, especially

be.

1

PAGE CONFIDENTIAL

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