	japan britain disagree on telecom merger cable and wireless plc cawl l is resisting attempts to merge two japan based telecommunications firms in the hope that overseas political pressure will force a change in those plans a company executive said cable and wireless which holds a pct stake in one of the two japanese firms is opposed to plans to reduce its share to three pct in the merged firm director of corporate strategy jonathan solomon told reporters that plan put forward by a senior member of the powerful business organization keidanren with the tacit backing of the post and telecommunications ministry has caused a storm of protest from abroad that japan is seeking to exclude foreign firms from a meaningful position in the market pacific telesis group pac n of the united states also holds a pct stake in one of the newly formed consortia international digital communications inc idc solomon said that both british prime minister margaret thatcher and u s secretary of state george schultz have written to the japanese government about the planned merger a key u s senate committee commerce secretary malcolm baldrige and trade representative clayton yeutter have also expressed opposition to the merger he said the post and telecomunications ministry reiterated again that it sees no need for two competitors to kokusai denshin denwa co ltd which holds a monopoly on international calls from japan the ministry has also suggested that foreign shareholders not hold managerial positions in the new firm in an attempt to hammer out an agreement solomon today met fumio watanabe the senior keidanren officer trying to arrange the merger but the two sides remained deadlocked at stake is c and w s mln dlr project to lay fibre optic cables between japan and alaska to form part of its global network c and w wants to start right away on the project such as application and other procedures said watanabe who is also chairman of tokio marine and fire insurance inc the japanese side is saying that the decision on such a plan should be left with the new firm after the merger these decisions on the merger were made in consideration of japan s economic conditions and legal systems i told him we are not a colony or something said watanabe reuter 
