 C00779614
 *** Document 17 of 25 for FBS5 ***
 DOCN 003540748
 PDTG R 271046Z OCT 00
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 CLAS UNCLAS
 WARN WARNING: TOPIC; DOMESTIC ECONOMIC, LEADER
 SERI SERIAL;  CPP20001027000083
 COUN COUNTRY; CHINA, HONG KONG
 SUBJ SUBJ;    EDITORIAL URGES TUNG TO BECOME LESS DEFERENTIAL TO HONG
 KONG'S TYCOONS
 SOUR SOURCE;  HONG KONG HONG KONG IMAIL (INTERNET VERSION-NNW) IN
 ENGLISH 27 OCT 00
 EDITORIAL; "TEST OF LEADERSHIP"]
 UNIDENTIFIED FLYING OBJECT LANDS IN STATUE SQUARE OUTSIDE THE
 LEGISLATIVE COUNCIL BUILDING. A DELEGATION OF MARTIANS EMERGES.
 "TAKE US TO YOUR LEADER," THEY. SAY. "WHO IS A'LEADER?" YOU RESPOND.
 "THE MOST INFLUENTIAL PERSON IN HONG KONG," THEY EXPLAIN. WHERE
 WOULD YOU TAKE THEM? CENTRAL GOVERNMENT HEADQUARTERS, OR THE CHEUNG
 KONG CENTRE?
 LI KA-SHING AND HIS FAMILY CAME UNDER CRITICISM THIS WEEK FOR
 THEIR DOMINANCE OF THE HONG KONG ECONOMY. HE AND HIS SONS ARE AMONG
 A SMALL ELITE OF BUSINESS TYCOONS WHO, IN THE WORDS OF A EUROPEAN
 PARLIAMENT REPORT, WIELD "UNDUE AND DOMINANT INFLUENCE".
 IS THIS FAIR COMMENTT YESTERDAY CHIEF EXECUTIVE TUNG CHEE-HWA
 REJECTED THE REPORT, ARGUING THAT HONG KONG'S ECONOMIC FREEDOM IS
 "ONE OF THE BEST IN THE WORLD".
 IT IS TRUE THAT THE LI FAMILY OWNS A LARGE PROPORTION OF HONG
 KONG'S BUSINESS. THE COMBINED TOTAL CAPITALISATION OF THE FIVE LI
 COMPANIES AMOUNTS TO MORE THAN 0702 BILLION, ALMOST A QUARTER OF
 HONG KONG'S STOCK MARKET. IT IS TRUE THAT MANY PRODUCTS WE NEED FOR
 BASIC LIVING ARE SOLD TO US BY LI FAMILY COMPANIES. MR LI ALSO HAS
 INTERESTS IN PORTS, TELECOMMUNICATIONS, PROPERTY, HOTELS, ENERGY
 AND INFRASTRUCTURE. TO SOME EXTENT, WHAT ME EAT AND DRINK, WHAT WE
 WASH WITH, HOW WE TRAVEL, HON WE COMMUNICATE AND WHERE WE LIVE
 COULD BE IN LI FAMILY HANDS. LAST YEAR THE *13 BILLION CYBERPORT
 PROJECT WAS AWARDED TO RICHARD LI TZAR-KAI WITHOUT A TENDERING
 PROCESS. THIS YEAR RICHARD LI ACQUIRED HONGKONG TELECOM, GIVING THE
 FAMILY CONTROL OF TWO TELECOMMUNICATIONS PROVIDERS, HONGKONG
 TELECOM AND HUTCHISON TELECOM.
 APPROVED FOR RELEASE
 DATE: )UL 2002
 000779614
 BUT THE PROBLEM, AND THE RESPONSIBILITY FOR DEALING WITH IT,
 LIES WITH THE GOVERNMENT. MR LI AND HIS SONS ARE SIMPLY GOOD
 BUSINESSMEN. THEY SEE AN OPPORTUNITY, AN ADVANTAGE, AND THEY GO
 AFTER IT. THEY SHOULD NOT BE CRITICISED FOR BEING SUCCESSFUL.
 INSTEAD, IT IS UP TO THE GOVERNMENT TO CONSIDER MEASURES TO PROTECT
 AGAINST MONOPOLIES AND PRESERVE COMPETITION.
 MR TUNG WAS YESTERDAY ENDORSED FOR A SECOND TERM BY CHINA'S
 VICE-PREMIER QIAN QICHEN. HE SHOULD TAKE ADVANTAGE OF THAT
 ENDORSEMENT, HAVE MORE CONFIDENCE, SPREAD HIS WINGS AND BECOME LESS
 DEFERENTIAL TO HONG KONG'S TYCOONS.
 (DESCRIPTION OF SOURCE: HONG KONG HONG KONG IMAIL (INTERNET
 VERSION-WNW) IN ENGLISH -- ONE OF HONG KONG'S TWO MAJOR INDEPENDENT
 INGMAYH2$U, ITEISEOWNEDEBY.SINGUTAOSHOLDINGTLTD, WHICHNWASTTAKEND
 OVER BY LAZARD ASIA FUND IN 1999.   ROOT URL ON FILING DATEi
 HTTP://HNH.HK-IMAIL.COM.]
 THIS REPORT MAY CONTAIN COPYRIGHTED MATERIAL.   COPYING AND
 DISSEMINATION IS PROHIBITED WITHOUT PERMISSION OF THE COPYRIGHT
 OWNERS.
 (ENDALL)
 #3109
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