SENIOR management at Hongkong Telecom have received an urgent appeal to control costs because internal forecasts show it will miss its own profit targets. 'I need your help,' says the chief executive Linus Cheung Wing-lam in a strongly worded document sent to senior management entitled 'January Core Brief'. 'The latest forecasts received at the end of December indicated that Hongkong Telecom would fall short of its targets for 1994 to 95.' He blames this primarily on calls from China into Hong Kong growing more slowly than predicted and says the management board has 'agreed that we should freeze recruitment, cease all discretionary expenditure and limit the rate of capital expenditure'. 'Discretionary expenditure includes items such as advertising and promotion, professional and consultancy fees, and travel and entertainment.' Analysts have been downgrading their forecasts for the company since it announced its interim results in November, which showed that calls from China into Hong Kong were growing more slowly. The cost of calling Hong Kong from China was raised in autumn, which has hit demand, as has China's austerity measures. One analyst said, however, that with the company's financial year of March 31 just two months away, the company could easily fine-tune its profits by as much as five per cent by careful timing of major purchases. Mr Cheung's appeal to his colleagues also blames rising costs and continues: 'I appreciate that you have all been working hard this year and that the next few months will not be easy. 'However, it is very important we should meet our targets this year, and I am sure that with your full support we will succeed.' A company spokesman said the company was happy with its current staff level of about 16,000.