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there is no reason why it should not be introduced if the

special circumstances of Hong Kong demand it. They do not

believe it to be ultra vires, though this is no guarantee that

it will not be contested if the legislation ultimately comes

into force.

9. There therefore seems no legal reason why we should not

authorise the Governor to proceed as he wishes. The only

issues on which Ministers may feel doubtful of proceeding as

the Governor wishes are moral and political:-

(a) have RTV been treated with less than justice by the

Hong Kong Government who undoubtedly did change their

policy to the prejudice of RTV's commercial operations,

though for reasons which seemed entirely valid to the

Government ?

(b) if there is any danger of strong opposition to, or

even rejection of, the Order-in-Council in Parliament are

Ministers willing to launch the operation ?

10. There is undoubtedly a Rediffusion Ltd. lobby in this

country including Lord Tangley, its Deputy Chairman, who will

oppose the Order-in-Council strongly. We are under an obliga-

tion dating back to 1968 to explain HMG's views to Rediffusion.

I recommend therefore that the best way to proceed would be as

follows:-

(a) Invite the Chairman of Rediffusion Ltd. to call to

listen to what he has to say.

(b) In the light of this conversation and

further

assessment of the likely strength of opposition to the

Order-in-Council in Parliament we shall have to decide

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