TNAG-2379-FCO40-3458-Hong-Kong-nationality-British-Nationality-(Hong-Kong)-Act-19-1991 — Page 25

CONFIDENTIAL TO DESKBY 29153OZ F C O

34-

167104

MDHIAN 1214

FM BTC HONG KONG

TO DESKBY 29153OZ F C O TELNO 35

OF 29115OZ JANUARY 91

AND TO IMMEDIATE DTI

DTI FOR LOVE, OT2/2

HKD 340

5

RECE"

FEB 1991

INU:

YOUR TELNO 38: BRITISH UNDERTAKINGS

1. THE ADVISORY GROUP MET ON 29 JANUARY. THE WHOLE SESSION WAS DEVOTED TO CONSIDERATION OF FIVE COMPANIES OR GROUPS, HUTCHISON, WHARF, MTR, KCR AND HONG KONG AND CHINA GAS. IT WAS NOT AN EASY MEETING, WITH SHARPLY DIVIDED VIEWS. ALL WERE PRESENT EXCEPT GOLDIE WHO HAD PROMISED TO COME LATE BUT DID NOT SHOW. TWO MEMBERS LEFT EARLY (POVEY AND AITKEN) SO WERE NOT PARTY TO ALL THE DECISIONS.

2. THE OUTCOME WAS ACCEPTANCE OF WHARF, TO INCLUDE WORLD INTERNATIONAL, WHEELOCK MARDEN AND WORLD WIDE SHIPPING. WE WILL NOW NEED FROM THEM A LIST OF ALL THE SUBSIDIARY COMPANIES OF THOSE WHICH ARE MORE THAN 50 PER CENT OWNED, WHICH ARE LIKELY TO BE MANY, WHICH WILL ALSO QUALIFY. THEY WERE JUDGED ACCEPTABLE ON THE BASIS OF OWNERSHIP, C IN YOUR TELNO 129 OF 24 AUGUST. WHARF HAD INFORMED US THAT 44 PER CENT OF WHARF AND 48 PER CENT OF WORLD AND WHEELOCK WERE OWNED BY PETER WOO (CHAIRMAN, AND SON IN LAW OF SIR Y K PAO) AND OTHER FAMILY MEMBERS WHO HOLD FULL BRITISH CITIZENSHIP, AND THAT OTHER BRITISH HELD SHARES HELD BY INSTITUTIONS WERE SUFFICIENT TO TAKE THE TOTAL OVER 50 PER CENT (WHARF CLAIM A TOTAL OF 9 PER CENT FOR WHARF AND 5 PER CENT FOR WORLD AND WHEELOCK SO OWNED). WORLD WIDE SHIPPING IS A PRIVATE COMPANY WHOLLY OWNED BY THE Y. K. PAO FAMILY WHO HAVE BRITISH PASSPORTS.

3.

HUTCHISON HAD CLAIMED ELIGIBILITY FOR CHEUNG KONG HOLDINGS, HUTCHISON WHAMPOA, CAVENDISH INTERNATIONAL AND HONG KONG ELECTRIC, ALL OF WHICH ARE SUBSTANTIALLY OWNED BY LI KA SHING AND ARE INTERLINKED. THE COMMITTEE ACCEPTED HUTCHISON WHAMPOA AND HONG KONG ELECTRIC AND REJECTED CHEUNG KONG AND CAVENDISH. HUTCHISON WERE JUDGED TO MEET CRITERIA D (III) AND D (IV) AND HONG KONG ELECTRIC D (II) AND D (III). CAVENDISH AND CHEUNG KONG WERE NOT JUDGED TO FULLY MEET ANY OF THE CRITERIA. CAVENDISH AND HONG KONG ELECTRIC WERE BOTH THOUGHT TO BE VERY MARGINAL, WITH

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CONFIDENTIAL TO DESKBY 29153OZ F C O