GRS 500
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FM HONG KONG
RESTRICTED
19.1
TO DESKBY 200600Z MANILA
TELNO 7
OF 2005OOZ MARCH 87
INFO ROUTINE FCO
RECEIVED A REGISTRY
DESY
***
TOP COPY
19 MAR 1967 Q DIST?
RY
320
HONG KONG/PHILIPPINES TELEPHONE LINK.
1. GREG CREW OF CABLE AND WIRELESS TELEPHONED PEIRCE, DEPUTY POLITICAL ADVISER, THIS MORNING TO SAY THAT THE PHILIPPINE LONG
DISTANCE TELEPHONE COMPANY (PLDT) THREATENED LAST NIGHT THAT AS OF MONDAY 23 MARCH THEY WOULD BLOCK ALL TELEPHONE TRAFFIC COMING
IN FROM HONG KONG. FOR ABOUT TWO MONTHS PLDT HAVE BEEN PRESSING CABLE AND WIRELESS TO DEAL DIRECTLY WITH THEM. C AND W CURRENTLY
CO-OPERATE WITH EASTERN TELECOMMUNICATIONS PHILIPPINES INC.
(ETPI) WITH WHOM THEY JOINTLY OWN THE CABLE LINKING HONG KONG WITH
THE PHILIPPINES. ETPI THEN PASS THE TRAFFIC ON TO PLDT FOR
DISTRIBUTION WITHIN THE PHILIPPINES. ACCORDING TO CREW THE
PHILIPPINE GOVERNMENT IS CONTEMPLATING DEREGULATING TELECOMM-
UNICATIONS. THE PLDT MOVE THEREFORE SEEMS TO HIM TO BE A POLITICAL
ACT TO PUT THEMSELVES IN THE STRONGEST POSSIBLE POSITION BEFORE
DEREGULATION.
2. CREW SAYS THAT ETPI ARE SPEAKING TO THE PHILIPPINE GOVERNMENT, PRESUMABLY THE SECRETARY FOR TELECOMMUNICATIONS, AND BELIEVE THAT
THEY WILL GET A SYMPATHETIC RESPONSE. THEY ARE ALSO SEEKING A
COURT INJUNCTION TO PREVENT PLOT FROM IMPLEMENTING THEIR THREAT.
MEANWHILE CABLE AND WIRELESS ARE INVESTIGATING WITH OTHER
TELECOMMUNICATION AGENCIES IN THE REGION THE POSSIBILITY OF
ROUTING TRAFFIC INDIRECTLY THROUGH THEM, WHICH WOULD MUCH REDUCE
THE QUALITY OF THE SERVICE BUT WOULD MEAN THAT IN EXTREMIS SOME
VOICE COMMUNICATIONS BETWEEN HONG KONG AND THE PHILIPPINES MIGHT
BE MAINTAINED.
3. PEIRCE ASKED CREW TO KEEP HIM INFORMED AND SUGGESTED THAT, IF THEY HAVE NOT ALREADY DONE SO, CABLE AND WIRELESS SHOULD BRIEF YOU
IN MANILA.·
4. IF C AND W AND ETPI CANNOT SORT THIS OUT ON THEIR OWN CHANNELS
YOU MAY WISH TO CONSIDER A POLITICAL INTERVENTION. IT CANNOT BE
REMOTELY IN THE OVERALL PHILIPPINE INTEREST THAT PLDT SHOULD CUT THE COUNTRY OFF FROM HONG KONG.
AKERS-JONES
HMLNAN 0386
LIMITED
HKD
SEAD
NEWS D.
INFO D.
MR GILL MORE
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