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I attach a record of my conversation with Mr Dennis of Rediffusion Ltd, which I have confined strictly to what was actually
said. As you know, in advance of Mr Dennis's visit I enquired what papers there had recently been from Hong Kong about this and Mr Gaminara put up a minute covering the paper submitted to EXCO, which was taken at its meeting on 22 February together with the summary of conclusions. I was therefore well aware of the fact that RTV (HK)'s position was extremely wobbly. I was a little bit
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surprised when Mr Dennis Se as I have recorded in paragraph 2 of my note that he seemed to think that the Hong Kong Government were merely going through the hoops but intended to ensure that RTV(HK) ultimately got the contract. As you will realise the only reason why a decision to put the second wireless TV service to public tender has not yet been published is that there are certain other consequent decisions still to be taken. In other words Mr Dennis's worst fears are about to be realised and the decision may be taken at EXCO this week.
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2. The Working Party, with the exception of the Financial Secretary's representative, reported unanimously that the second service should be negotiated with RTV (HK) and that the third service should be put out to public tender. No doubt the Working Party's reasons were very much those points of equity whichMr Dennis made to me. The Financial Secretary did not give up, however, and with the support of the Colonial Secretary (though Mr Dennis inferred that senior members of the Secretariat did not agree) succeeded in having the recommendation of the Working Party reversed at EXCO.
3. I think it very likely that Rediffusion Ltd will protest here in London if a British firm is deliberately done to death (as may happen) by an action of the Colmial Government. We may also get Questions in Parliament. No doubt the Hong Kong Government are bending over backwards to be seen to be doing the right thing in respect of a tender, but the effect may well be very unfair to RTV(HK) who have sunk a lot of capital in the Colony, have provided a good service and were doing well enough financially until the Government decided in the interests of competition to create the second television service, TVB. RTV (HK) may be beginning to wonder what the Government have against them. The Hong Kong Government have
(a)
(b)
(c)
created oppostion (TVB);
introduced copyright proposals and threatened unilaterally to alter RTV's licence in an attempt to prevent RTV (HK) from doing things which the original licence specifically permitted them to do; and now
discriminated against them in the setting up of a second wireless TV service.
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