element in their operations.

Holding the balance.

10. Mr. Hobley said that the Hong Kong Government was

seeking a just solution and he sought confirmation from the

meeting that the solution they proposed was indeed just.

Asked by the Chairman whether it would in fact be to the

disadvantage of H.K.T.V. if R.T.V. relayed their programmes,

he said he would not have thought so. Mr. Davis pointed out

that, if they were allowed to relay, R.T.V. would in effect be

converting the 625 line H.K.T.V. transmissions to 405 lines,

thus making it possible for owners of the latter type of set

to receive it.

11. In answer to a question from Mr. Davis, Mr. Hobley agreed

that H.K.T.V. would in fact like to drive R.T.V. out of

business, and he agreed with the Chairman that it should be

Government's aim to "hold the ring".

12. The Chairman asked what would be the situation if R.T.V.

were given a right to relay H.K.T.V. programmes by contract.

Advertisers would then know which of their advertisements

(placed on H.K.T.V.) were also being relayed by R.T.V.

Mr. Hobley acknowledged that, as matters stood, H.K.T.V. would

have, (under Section 4(2)), complete control over the relay of

their programmes and would not in fact be obliged to agree to

any relays.

Copyright legislation.

13. Mr. Oxley had pointed out early in the meeting that it was

unusual to use copyright legislation in order to restrict

rights under a licence. He wondered if this was in fact the

right way to do it. We were faced with an unusual situation,

insofar as the modified U.K. Act was, under the Hong Kong

proposals, to be further modified by a separate operation.

14.

Answering the Chairman, Mr. Oxley said that we had indeed

the power to disallow the proposed legislation. He added that

he was not happy about the way in which Section 4(2) gave H.K.T.V.

"the whip hand" over all relays. He wondered if a clause

/could

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