TNAG-2679-FCO40-3876-British-Trade-Commission--Hong-Kong--and-China-Trade-Unit-re-1993 — Page 25

04,OCT '93 16:14 DTI-TPIH

To:

Mr Lane

From:

Lesley Beech

Trib

2.85 Grey, BPR

071-215 1782

DTI-TPIH

P.ar-16E

COMMERCIAL IN CONFIDENCE

Mr Salvidge

TP

Mr Temple'

TP7

Mr Neilson

TP1

Mr McMillan

TP2

Mr Hendon

TP3

Mr Kirby

TP1c

Ms Dixon

TP1d

29 September 1993

NOTE OF MEETING WITH HUTCHISON

28/9/93

You, Mr Neilson and I met with Canning Fok, Group Managing Director of Hutchison Whampoa Limited, Lord Derwent, Managing Director of Hutchison Whampoa (Europe), Frank Sixt, Executive Director of Hutchison Whampoa and Hans Snook, Managing Director of Hutchison Telecommunications (UK) Ltd. You had not been advised in advance of the purpose of the meeting.

2. Lord Derwent introduced Canning Fok and said that he had asked for this meeting as Canning Fok was in the UK to meet Hutchison's telecommunications people and familiarise himself with the various telecommunications businesses. Canning Fok explained that he had only been Group Managing Director for 4 weeks but that he wanted to confirm Hutchison Whampoa's commitment to their UK telecoms activities, in particular PCN, but also raise a number of issues which were important to their telecoms businesses,

3. Canning Fok said that Hutchison were committed to launching their PCN network in about 6 months time (as previously indicated) and that the two most important factors for the network were good speech quality and coverage. (Greater coverage at launch has always been Hutchison's reason for a later launch than Mercury One-2-One).

4. Canning Fok also confirmed that BAe were going to continue their (30%) investment in Hutchison Telecommunications (UK) Ltd in the medium term, although not permanently.

5.

You said that the Government's interest in attracting inward investment was reflected in the tax benefits given and that UK telecoms in particular was one of the most open markets in the world, including the US. You later emphasised the importance of the telecoms sector by pointing out that more foreign investment is being put into UK telecoms than, for example, the motor car industry.

6.

Hans Snook said that he had a list of items which were of concern to Hutchison. He recognised that he had raised them before with the Minister and that they were generally matters for

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