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28 February 1991
A revealing and perceptive comment in the editorial however is the observation that "rich pickings in telecommunication services have motivated many companies, domestic and international, to apply pressure on the Government to liberalise. The giant American Telephone and Telegraph, itself subject to deregulation on home ground, has warned that it and other telecommunication firms might relocate to other Asian hubs unless the Government accedes to genuine competition". The pressure is in fact almost all from US sources, and the revelation that an American firm of consultants has been appointed to advise on these issues cannot be good news for Cable and Wireless and therefore for British commercial interests. (Of course in the event of a liberalisation programme, the way would be open for British Telecom to compete as well, but any changes would be at the expense of Cable and Wireless and so UK interests would be likely to be net losers.)
4. Since Anson Chan's LegCo comments Cable and Wireless here have responded publicly saying that they are very happy that the HKG is not planning to terminate their local franchise, and that they assume they are not planning to end the international franchise since consumer interests are well protected. In private however they are much less sanguine about Anson Chan's remarks.
Copies: R S Reeve Esq
Head of COMED
FCO
D Love Esq OT2/2 DTI
Your
Peli
even
PW Heap
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