TNAG-1695-FCO40-2351-Future-of-Hong-Kong-nationality-1987 — Page 198

ZCZC

HMLNAN 8083

CONFIDENTIAL

RR OTTER

FM MKBTC TO OTTER

040835Z FEB

GRS 150

CONFIDENTIAL

FM BTC HONG KONG

TO ROUTINE DTI

TELNO OTTER 26

OF 040835Z FEBRUARY 87

dick 306/..

RECEIVED

REGISTRY

- 4FEB 1987

VSIRY

Action Taken

mek

HKD

DTI TRED

NO DISTRATION

THE TAY

WAS NOW ADVANCES

FOR TRACY OT2

YOUR OTTER 39: BRITISH TELECOM

HAVE NO KNOWLEDGE OF ANY SUCH SPECIFIC STATEMENT. HOWEVER CABLE AND WIRELESS (CW) AND BRITISH TELECOM (BT) ARE IN KEEN COMPETITION

FOR HONG KONG'S FIRST CABLE TELEVISION FRANCHISE.

2. CW (AS HONG KONG TELEPHONE WHO HAVE THE TELEPHONE FRANCHISE AND AN EXTENSIVE SYSTEM THROUGHOUT THE TERRITORY) ARE IN A CONSORTIUM WITH OTHER LOCAL COMPANIES INCLUDING SWIRE PACIFIC. BT HAVE JOINED FORCES WITH HUTCHISON AND HONG KONG ELECTRIC (WHO HAVE A NETWORK OF DUCTS THAT COULD BE USED FOR CABLE) AND SIR RUN RUN SHAW, THE FILM MAKER.

3. BT ARE NEWCOMERS AND HAVE JUST OPENED AN OFFICE IN HONG KONG. THEIR REPRESENTATIVE AND THE HEAD OF HONG KONG TELEPHONE ARE ENGAGED IN A DUEL IN THE CORRESPONDENCE COLUMNS OF THE SOUTH CHINA MORNING POST OVER WHO COULD BEST HANDLE THE TELEVISION FRANCHISE. THEY HAVE USED HARSH WORDS ABOUT THEIR RESPECTIVE TELEPHONE SERVICES IN THE UK AND HONG KONG.

4. IT HAS BEEN SUGGESTED IN THE PRESS THAT HUTCHISON/BT ARE

INTERESTED IN MORE THAN THE CABLE TELEVISION FRANCHISE AND WOULD LIKE TO ESTABLISH A NETWORK THAT COULD CARRY OTHER INTERACTIVE

SERVICES AS WELL. CW ARE NOT AT ALL HAPPY ABOUT THIS. THEY HAVE

SUGGESTED THAT WHOEVER IS LICENSED TO PROVIDE THE CABLE TV THE

SERVICE COULD BE CARRIED OVER HONG KONG TELEPHONE'S NETWORK.

5. AS I AM SURE YOUR COLLEAGUES IN OT4 WILL REALISE IT WOULD BE

BEST NOT TO BE DRAWN INTO THIS BATTLE.

HOLLOWAY

YYYY

HMLNAN 8083

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