TNAG-2247-FCO40-3230-Business-interests-in-Hong-Kong-Cable-&-Wireless-1991 — Page 30

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

CONFIDENTIAL COMMERCIAL-IN-CONFIDENCE

34

051210

MDHIAN 7781

CONFIDENTIAL

COMMERCIAL-IN-CONFIDENCE

FM DTI

TO IMMEDIATE BTC HONG KONG

TELNO INDUS 26

OF 161958Z OCTOBER 91

Meis 121/2

BTC HONG KONG FOR MR SMITH-LAITTON

W

Mc

ли

M. lx"

An Mh Stard

Mr Gappss

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MR LANE, DEPUTY SECRETARY, DTI: MEETING WITH DOMINIC WONG, POSTMASTER GENERAL, 18 OCTOBER

PLEASE ARRANGE FOR THE FOLLOWING TO BE FORWARDED TO MR LANE (FURAMA KEMPINSKI) PRIOR TO HIS MEETING WITH MR WONG ON FRIDAY.

BT HAVE PROVIDED THE FOLLOWING BRIEF, OF WHICH POINTS 1 AND 2 ARE FOR BACKGROUND INFORMATION ONLY. THE FOLLOWING IS A GLOSS

ON THE POINTS RAISED BY BT:

DISPROPORTIONATE RETURNS AND ACCOUNTING RATES

1.

DURING THE REVIEW OF THE BT/MCL INTERCONNECT AGREEMENT IN 1988, BT RAISED WITH OFTEL THEIR CONCERN THAT C AND W CONTROLLED OPERATORS IN HONG KONG (AND BAHRAIN) WERE SENDING A DISPROPORTIONATE AMOUNT OF TRAFFIC TO MCL. BT SPECIFICALLY ASKED OFTEL TO PERSUADE C AND W AND MCL TO ABANDON THE PRACTICE. OFTEL ASKED MCL FOR DETAILS OF PROPORTIONATE RETURN ARRANGEMENTS AND OF OUTGOING AND INCOMING TRAFFIC, BUT THE LATTER DECLINED TO PROVIDE THE INFORMATION. CONCLUDING THE CORRESPONDENCE IN JULY 1988, SIR BRYAN CARSBERG STATED THAT ONCE MERCURY'S ACCESS TO THE UK MARKET HAD MATURED, HE WOULD REGARD MERCURY'S CONTINUED ENJOYMENT OF DISPROPORTIONATE TRAFFIC FROM HONG KONG AS UNFAIR, AND WOULD THEN EXPECT MERCURY TO WORK FOR THE ESTABLISHMENT OF PROPORTIONATE RETURNS.

CELLULAR LICENCE IN HONG KONG

2.

AS VODAFONE TOLD YOU DURING YOUR MEETING WITH THEM AT TELECOM '91, THEY PLAN TO INVEST IN PACIFIC LINK, WHICH WOULD RULE THEM OUT OF APPLYING FOR THE FOURTH CELLULAR LICENCE IN HONG KONG. THE DEAL, WHICH VODAFONE HAD HOPED TO FINALISE THIS WEEK, APPEARS TO BE LESS STRAIGHTFORWARD THAN EXPECTED. JULIAN HORN-SMITH, MD OF VODAPAGE, IS IN HONG KONG ATTEMPTING TO CLOSE

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