TNAG-1986-FCO40-2819-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 107

23.

22.2 The only corporate experience in programming within this group is Shaw's. TVB's programming experience has been drawn upon extensively by HKCC through "advisors" seconded from TVB. Sir R. R. Shaw's willingness to inject corporate programming experience into HKCC to the extent of creating serious competition with TVB is questionable.

22.3 We consider the relative fragmentation of ownership of HKCC as a disad- vantage: first, we believe that the company structure represents a risk of lack of continuity in policy if shares are bought and sold; secondly, it admits of the possibility that the two foreign partners could act in concert to out-vote the local parties; and thirdly, Shaw Brothers, with their strong interest in TVB, could be in a position of holding a deciding vote - thus potentially having more power than the company structure suggests superficially.

HCV's shareholding structure is as follows -

Fig. 9

Shareholding Structure of HCV

Hutchison Cavendish Telecommu- Inta'l

dications Holdings

British Telecom pic

CITIC

Hongkong & Shanghai Banking Corporation

80%

20%

100%

100%

100%

100%

Hutchison Cablevision Holdings Ltd

British Telecom (Far East)

50%

24%

Belvienna Company Ltd

10%

Swire

Pacific Ltd

Grenville Eastern Holdings

Koithip Ltd

10%

5%

1%

HCV

23.1

Hutchison Whampoa Ltd, through Hutchison Telecommunications and Cavendish International Ltd, is the largest provider of telecommunications serv- ices in Hong Kong after the HK Telecom Group. Mobile telephones and paging services are the best known. One of the group is a major partner in the AsiaSat venture. Cavendish International holds Hong Kong Electric, which has long utility construction experience on Hong Kong Island. The Hong Kong Bank is a major world bank. Swire Pacific Ltd is a major operator in Hong Kong in aviation, hotels, light industry, property and trading. British Telecommunications pic was privatized in 1984. Its reputation as a telephone company has been patchy until recently, but is improving. Its business services reputation since privatization has been better. CITIC is a Chinese State-owned enterprise operating in Hong Kong in the fields of transportation, infrastructure development, property, energy and telecommunications. CITIC holds a share in the Eastern Harbour Crossing (9.5% road, 10% rail), a 12.5% interest in Cathay Pacific, and property interests in Hong Kong and Kowloon. CITIC's technology arm, Cititech, is also a contractual partner in AsiaSat.