TNAG-1779-FCO40-2539-Hong-Kong-international-telecommunications-1988 — Page 37

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CABLE & WIRELESS NORTH AMERICA, INC.

He raised the topic of the CWHK franchise agreement, which he characterized as "secret" and that the FCC was unable to discuss the franchise agreement with the Hong Kong government. According to Brock, Dennis Patrick was "surprised and taken back" by the state of affairs and was "concerned" with the implication for value

Patrick added networks and "equitorial-type" services. then told Brock to "find something pending with CWNA" to discuss this entire matter.

Brock then mentioned again an interest in seeing the franchise agreement stating that in all other countries which the FCC visited such documents were made available. He was very clear that the interest in the agreement was intended to have a U.S. interpretation which might facilitate some unspecified "opening" of the market. Here he raised the recent FCC negotiations with the Deutsch Bundespost and I noted that Hong Kong had much earlier opened up operations with MCI, Sprint, and other voice carriers from the United States.

Brock agreed but then began to discuss the "open market" that exists in the U.S. with a particular focus

He stated that upon value added services and resale.

some U.S. firms have complained to the FCC - in Hong Kong and the U.S. Embassy had also contacted the FCC in this regard. When asked specifically, Brock

-

identified IBM.

He concluded by stating that the "secrecy" of the francise agreement left companies like IBM with a "need to know what the rules are" so that they can explore various business opportunities.

As you suggested, I have discussed this matter with both Mike Gale and Terry Miller and will be following up with a meeting in Hong Kong next week.

KEB739

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