NOTHING TO BE WRITTEN IN THIS MARGIN

(83247) (2) 300M 10/65 St.S.

way of Rediffusion exercising their rights

which did not previously exist and would

seem, in effect, to nullify Rediffusion's

right under their licence to relay

television broadcasts. This is because the

effect is to make a licence from Hong Kong

Television Limited necessary, while the .

commercial inducement to grant such a

licence to Rediffusion is to be removed by

allowing another relay diffusion service

(the so called aerial distribution system)

to be established.

The licence to Rediffusich

Ltd. ensures that it is a British concern;

we do not know whether any similar condition

would attach to the other relay service.

(iii) The Legal Adviser suggests that Section 40(3)

of the Act should not be omitted without the

inclusion of some provision to the effect

that, if any copyright licence to relay or

diffuse television broadcasts by wire is

granted, it shall be granted on the same

terms to all diffusion concerns.

(iv) The Legal Adviser takes the view that, since

Section 4(2) would include broadcasts from

outside the Colony, it is ultra viries; it

is not within the power conferred by

Section 31(3) of the Copyright Act since

that limits the modifications which may be

made to television broadcasts made from

within the Colony. He also considers that

Section 4(3) of the Ordinance is ultre

viries since, in effect, it purports to

permit the Governor to do by Order what

Section 31(3) of the Act permits the

legislature of the Colony to do

(v) Regarding Section 5, he says he would have

/doubted

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