XCC(72)14

49

CONFIDENTIAL

- 12 -

Further recommendations on the grant of new licences are that tenders for the third station should be invited as soon as possible (recommendation 63) and that all licences should be for terms of 15 years subject to renewal at the same time (recommendation 65). Proposals are also made concerning tender procedures (recommendations 66 - 69).

Wired television

50

As the future of wired origination services and relay is dependent to a certain extent upon whether or not the second wireless television should be granted to Rediffusion by negotiation, it is proposed to consider recommendations 70 - 82 at a later date. It should, however, be pointed out that if it should be decided to grant the second wireless television licence after a public tender it will in all probability be neces- sary to extend Rediffusion's licence for at least another year on its expiry in April 1973. In the interests of Rediffusion's subscribers (both existing and potential), possible applicants for future wireless television licences and of Rediffusion itself it will be necessary to announce the Government's decision on the future of wired services at the same time as announcements are made on new wireless television licences.

Sound broadcasting

51

The working party's terms of reference also required it to consider the possible effects of its television broadcasting recommen- dations on sound broadcasting and to suggest any changes in this field that might appear to be necessary. The working party considers that the already diminishing influence of sound broadcasting will probably be hastened by the establishment of further wireless television services. Nevertheless it is convinced that the very widespread ownership of trans- istor radios and sound broadcasting's importance as the most immediate means of public information requires a continuing government presence in this field and the investment of public funds in Radio Hong Kong (recom- mendation 88). Changes in commercial sound broadcasting would not be possible until the expiry of Commercial Radio's exclusive licence in 1979 but the working party recommends that Commercial Radio should be required to relinquish its monopoly if it obtains a wireless television licence (recommendation 89).

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(a)

(b)

Honourable Members will be asked to advise:

whether the second wireless television licence should be granted to Rediffusion by negotiation or after a public tender (paragraph 47);

whether consideration should be given to the following recommendations as a separate exercise;

(i)

23-24

(ii)

27-28

air-time for ETV (paragraph 18)

weather forecast pro- grammes (paragraph 19)

(iii) 70-82-wired television (para-

(iv)

graph 50)

87 royalty payable by the

third station (paragraph 37);

CONFIDENTIAL

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