XN000022-1986-07-10 — Page 3

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THURSDAY, JULY 10, 1986

MR SO SAID THAT IN VIEW OF THE SUBSTANTIAL INTEREST THE GOVERNMENT WOULD CONDUCT DISCUSSIONS WITH TELCO AND ANY OTHER INTERESTED COMPANIES IN ORDER TO ASCERTAIN HOW PILOT SCHEMES COULD PROCEED.

HE STRESSED THAT THESE NEGOTIATIONS WOULD BE CONDUCTED ON A NO-COMMITMENT BASIS, MAKING CLEAR THAT THERE COULD BE NO GUARANTEE THAT A FRANCHISE WOULD BE AWARDED TO THE COMPANY ON COMPLETION OF THE PILOT SCHEME.

THE OUTCOME OF NEGOTIATIONS WOULD BE REPORTED BACK TO THE EXECUTIVE COUNCIL, HE SAID.

GOVERNOR LEAVES FOR NORTH AMERICA ****

THE GOVERNOR, SIR EDWARD YOUDE, LEFT TODAY WITH A HIGH-LEVEL DELEGATION ON A 13-DAY OFFICIAL VISIT TO NORTH AMERICA.

SPEAKING TO REPORTERS AT THE AIRPORT, SIR EDWARD SAID DURING HIS TRIP HE WOULD PRESENT A POSITIVE IMAGE OF HONG KONG AS +A GOOD PLACE IN WHICH, TO DO BUSINESS AND IN WHICH TO INVEST+, AND WOULD STRESS THE IMPORTANCE WHICH HONG KONG ATTACHED TO THE PRINCIPLE OF FREE TRADE.

+THIS IS, I'M SURE, GOING TO BE A VERY IMPORTANT AND PLEASANT TRIP. THIS IS A TIME WHEN OUR ECONOMIC AND TRADE RELATIONSHIPS WITH THE UNITED STATES AND CANADA AND VERY IMPORTANT TO HONG KONG, + HE SAID.

SIR EDWARD SAID HE WOULD ALSO EMPHASISE THE EXCELLENCE OF HONG KONG'S COMMUNICATIONS, AS EVIDENCED BY CATHAY PACIFIC'S INAUGURAL FLIGHT TO SAN FRANCISCO WHICH HE TOOK THIS MORNING.

HE SAID HE WAS LOOKING FORWARD VERY MUCH TO THE VISIT TO EXPO FOR THE HONG KONG DAY, WHERE HE WOULD MEET A LARGE NUMBER OF CANADIANS AS WELL AS PEOPLE FROM HONG KONG, WHO WOULD BE CELEBRATING WITH THEM.

SIR EDWARD, ACCOMPANIED BY LADY YOUDE, WAS SEEN OFF BY THE CHIEF SECRETARY, SIR DAVID AKERS-JONES, THE SENIOR UNOFFICIAL MEMBER OF THE EXECUTIVE COUNCIL, SIR SZE-YUEN CHUNG, AND THE DIRECTOR OF INFORMATION SERVICES, MR JOHN CHAN,

ALSO ON BOARD WERE THE CHAIRMAN OF THE TRADE DEVELOPMENT COUNCIL, MISS LYDIA DUNN, THE CHAIRMAN OF THE HONG KONG BANK SIR MICHAEL SANDBERG, AND CPA CHAIRMAN, MR MICHAEL MILES.

SIR DAVID WILL BE ACTING GOVERNOR DURING THE ABSENCE OF SIR EDWARD FROM HONG KONG.

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