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To: qdog who wrote (10039)	4/21/1998 9:10:00 AM
From: brian h	Respond to of 152472

Qdog and all, Speaking of the world, heard a report that China's GDP was a mere 7%??? Seems China is slowing a mite, mate. How about Mr. Schwartz's negotiation skills to include China Telcomm's investment? Did China Telcomm buy LEAP option two years ago for 37.5 million or what? (gg) That will help China's GDP a bit for sure. China Telecom (HK) to invest in Globalstar BEIJING, April 21 (Reuters) - China Telecom (Hong Kong) will buy a 1.6 percent stake in U.S.-based Globalstar Telecommunications Ltd (GSTRF - news) for $37.5 million, Globalstar chairman Bernard Schwartz said on Tuesday. The price for the stake was set at the start of negotiations two years ago, Schwartz told a news conference. The stake was valued at about $120 million now, he said. ''China Telecom as an investor has done extremely well,'' he said. Schwartz is also chairman of Loral Space & Communications Ltd (LOR - news), the largest equity holder in Globalstar. China Telecom (HK) is the Hong Kong-listed arm of China Telecom, the country's state-run telecommunications giant. Globalstar is building a worldwide satellite-based mobile telephone system with a network of 48 low-orbit satellites. Its handsets will be able to handle satellite telephone service and conventional cellular service. Schwartz forecast the number of subscribers in China would hit 200,000 by 2002. About half of the handsets would be in cities while the rest would be in the hands of business travellers or in rural areas, said Anthony Navarra, Globalstar's executive vice-president of strategic development. Schwartz said there was tremendous demand for telephone services in China, which said last week it planned to spend $54 billion on telecommunications projects by 2000. China has estimated the number of mobile telephone users will be between 30 and 40 million in 2000, around triple the present figure. Globalstar launched its first four satellites in February and expected to start full worldwide service in late 1998, when it was to have 44 satellites in orbit, according to a company statement. The remaining orbiters would come on line in the first half of 1999 and Globalstar expected to start generating revenue that year, the statement said. ($1 equals 8.3 yuan)