TNAG-2247-FCO40-3230-Business-interests-in-Hong-Kong-Cable-&-Wireless-1991 — Page 201

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

ming

Routine.

Argument

TI HEADQUARTERS 01 222 2629

P.3

There has been growing pressure from some quarters in Hong

Kong for a break up of Cable & Wireless's monopoly position in

local and international telecommunication services. The US,

The HK

who are very successful in the Hong Kong market overall, have

been particularly active in this regard with AT & T, for

example, threatening to move to other Asian centres unless the

Hong Kong Government accedes to competition.

Government are concerned that if they do not liberalise, US

interests in particular may move some of their activities to

another telecoms hub (eg Singapore) in that part of the world.

and

The Hong Kong Government has appointed Booz Allen Hamilton,

American firm of consultants, to consider whether a second

telecommunications network should be built in Hong Kong and tò

assess the impact of removing the exclusive franchise on local

calls after the current agreement expires in 1995. The

report, which we believe is now in the hands of the Hong Kong

Government, may well recommend early liberalisation of the

network. The Hong Kong Government publicly stated in February

that there was no intention to terminate Hong Kong telecom- munications domestic monopoly, but said that if very

is

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