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In response to media enquiries concerning the proposal from Pacific Century Cyberworks Ltd. (PCCW) about the merger with Cable & Wireless Hong Kong Telecom (CWHKT), the Government issued the following statement today (Tuesday) :

"We take note of the announcement by PCCW concerning its proposal about the merger with Cable & Wireless HKT. It is up to the Board of Directors of CWHKT and the companies concerned to decide on any proposal in the interest of shareholders and according to commercial principles.

We have not yet received any detailed terms and conditions of the merger in respect of any change to the licensing entities under the CWHKT group of companies holding the various licences for telecommunications and broadcasting services.

Upon receipt of the detailed terms and conditions of the merger, we will study them carefully with a view to ensuring that the regulatory requirements will be fully complied with by the new, merged entity.

Specifically, the new entity will have to satisfy the Telecommunications Authority and the Broadcasting Authority that it will continue to be able to meet in full the various licence terms and conditions, including any obligations and restrictions to which CWHKT group of licensees is subject."

End/Tuesday, February 29, 2000

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