TNAG-2247-FCO40-3230-Business-interests-in-Hong-Kong-Cable-&-Wireless-1991 — Page 214

ternal 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 and Wireless represents a very

high proportion of the whole.

There has been growing pressure from some quarters in Hong Kong

for a break up of Cable & Wireless' monopoly position.

The US,

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

particularly active with American Telephone and Telegraph for

example threatening to move to other Asian centres unless the

Hong Kong Government accedes to competition.

There have been two recent developments of note. Firstly, the US

and Hong Kong Governments have signed an agreement concerning the

liberalisation of the use of internal leasing circuits. Although

Cable and Wireless do not see this as a major threat, they

regard it as a small move towards deregulating the

telecommunications market.