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Reference......

Mr. Hobley and the Secretary of State is advised that it should be applied and that either it should be applied in relation to Hong Kong broadcasting companies as it applies to the B.B.C. and I.T.A. by the Order in Council or similar provision to that effect should be included in the Ordinance. The Despatch might then state that, subject to that point (and to any outstanding Board of Trade points) and to clarification on a further point mentioned below, the Secretary of State would see no objection to the proposed Order in Council or, subject to the amendments to section 4 of the draft Ordinance mentioned in paragraph 3 above, to the draft Ordinance.

7. A further matter which requires consideration is the fact that a member of the Executive Council, Mr. Clague, is understood to have a substantial interest in Hong Kong Television Broadcasts Ltd., which stands to gain from the proposed legislation as it affects television broadcasts, and that it is odd that this fact has not been brought to our notice by the Governor. I would not have thought that approval to the legislation should be withheld by reason of that fact alone, provided the Governor can assure the Secretary of State that Mr. Clague took no part in the Council's deliberations and the fact that he was a member of the Council did not influence them in arriving at their decision that the copyright legislation should give Hong Kong Television Broadcasts Ltd. a copyright in their programmes. would, therefore, suggest that the Despatch should seek enlightenment on this point and state that approval is subject to the Governor's assurance on this point.

I

8. Mr. Hobley told us that the Government of

Hong Kong intend to revoke Rediffusion's licence on

the ground that to do so would be in the public interest (see paragraph 10 of the attached note). Rediffusion may well object strongly to this, though Mr. Hobley told me that they would be granted a new licence which, in some respects, might be more favourable to them than their present licence. However that may be, if this is done otherwise than with the full agreement of Rediffusion, the Secretary of State may be questioned in Parliament about it. I suggest that the Despatch should say that it is

/understood

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