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CONFIDENTIAL
subject to a determined contestant cutting prices or
bidding high on royalties deliberately to get started.
2. He also argued that even if RTV (HK) were success-
ful in securing a licence by tender the procedure was
unlikely to be launched before November 1972 and would
probably take a year to complete. He spoke very
frankly about the financial position of RTV (HK) saying that
the existing service was barely breaking even and would
certainly be running at a loss from the beginning of
1973.
Continued running at a loss (assuming that
their licence could be extended beyond April 1973)
without a guarantee of getting a new licence would be
very costly and unfair. He believed that the Govern-
ment Working Party on the future of broadcasting
had recognised this and had accordingly recommended that
RTV(HK) should be awarded a licence by negotiation, but
that this recommendation had not been accepted by the
Government.
3. In view of the formal nature of these representa-
tions Wilford said that we would, of course, enquire
of the Hong Kong Government what the situation was.
Grateful for information as soon as possible.
4.
Full record follows.
CONFIDENTIAL
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