Timing
Routine.
Background
Cable & Wireless in Hong Kong, through their subsidiary Hong
Kong Telephone, currently have an exclusive licence to run
Hong Kong local and international telecommunications services.
The internal licence is due to expire in 1995 and the external
licence in 2006. Hong Kong Telecom imports significant
amounts of British equipment, including satellite earth
station equipment, broadcasting towers, fibre-optic cables and
pay telephones. It is the private sector's largest employer
with approximately 17,000 staff and is the largest company
listed on the Hong Kong Stock Exchange. As well as Cable and
Wireless, major shareholders include CITIC (an external agency
of the Chinese Government, with a 20% stake) and the Guangdong
Posts and Telecommunications Bureau (1%). It represents one
of Britain's biggest investments in Hong Kong and Hong Kong's
contribution to the world wide profits of Cable & Wireless
represents a very high proportion of the whole (75% in 1989).
There has been growing pressure from some quarters in Hong
Kong for a break up of Cable & Wireless's monopoly position.
The US, who are very successful in the overall Hong Kong
market, have been particularly active with American Telephone
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