TNAG-1695-FCO40-2351-Future-of-Hong-Kong-nationality-1987 — Page 101

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15 MAY 1987

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11 May 1987

Mr McLaren Mr Braithwaite

23

BRITISH TELECOM

1. Mr John King, Managing Director of the Overseas Division of British Telecom, called to see me yesterday. His visit followed a lunch which British Telecom gave at the end of last year for a number of colleagues in the Office to brief them on the company's overseas activities. Mr King wanted to bring me up to date.

2.

a.

b.

C.

d.

e.

He told me the following:

Malaysia The company had been in touch with the Malaysian Government about the privatisation of Malaysian Telecom.

This is a fairly long-running saga, but the Malaysians appear to have made little progress in the direction of privatisation in the last three years. British Telecom is giving lunch to the Malaysian High Commissioner on 15 July. I urged them to get in touch with Sir Donald Hawley, who is hoping to arrange a reception with the British Malaysian Society in the following week during the visit of Dr Mahathir.

China British Telecom were pursuing with the Chinese consultancy work on a national network management centre in Peking, contract value about £2 million. British Telecom were hopeful of pulling this off, but there is nothing solid. They were also bidding for a turnkey telecom project in Ningbo. Here, too, they were reasonably optimistic about progress.

Hong Kong British Telecom were bidding for a cable TV contract worth about £50 million. This was another area in which they had come into conflict with Cable and Wireless, who feared that British Telecom might be a long-term threat to C & W's position. British Telecom had made it clear that they were interested in a long-term investment in Hong Kong.

Indonesia

British Telecom were pursuing an airport security and control contract. The Company's recent purchase of International Air Radio had given them a good entrée and they were fairly confident of getting business, the economy permitting.

This would be

Thailand The company was bidding for an East-coast telecom project working closely with GEC and Plessey.

a turnkey project involving initial investment eventually bought back by the Thai government.

/f.