C00779614 *** Document 17 of 25 for FBS5 *** DOCN 003540748 PDTG R 271046Z OCT 00 FM FM FBIS RESTON VA TO TO RAYMIK/ASTJIC OBU RAYWBFA/ONARCANBERRARACTDASRANCH RHAKAAA/3530SS KADENA AB JA//IN// (b)(1) RHEFADA/4971GDAMHSHLGRBEONLVLIANG AFB DC A RHHJJAA/JICPAC HONOLULU HI RHHJJPI/PACOM IDHS HONOLULU HI. RHHJRAP/USARPAC INTEL FT SHAFTER HI//APIN// RHHMUNA/USCINCPAC HONOLULU HI RUCXNIS/DIRNAVCRIMINVSERV WASHINGTON DC RUCXONI/ONI WASHINGTON DC//2140// RUEAIIS/STORAGE CENTER FBIS RESTON VA RUEHBJ/AMEMBASSY BEIJING RUEHC/SECSTATE WASHINGTON DC//INR// RUEHC/SECSTATE WASHINGTON DC//STR// RUEHHK/AMCONSUL HONG KONG RUEHSH/AMCONSUL SHENYANG RUEKDIA/DIA WASHINGTON DC RUEKJCS/SECDEF WASHINGTON DC RUEOAYA/CDRNOIC CHARLOTTESVILLE VA RUEPMAX/LISA FT BRAGG NC RUEPPOG/CDR PSYOPGP FT BRAGG NC//ASOF-POG-SB// RUEPPOG/CDR4THPSYOPGP FT BRAGG NC//AOCP-POG-SB// RUEPHDC/DA AMHS WASHINGTON DC RUETIAA/NSACSS FT GEORGE 0 MEADE MD RUHBABA/CG III NEF//G-2// RUQVKEEW/AFIWCWKELLY AFBTTX/ OS SKC//OH ACCT FBWA-EWDK BT 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 NNNN NNNN ===EOD===