CONFIDENTIAL

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he could ask to see Mr Royle. I have so far held him off.

4.

Yes.

We have now had a telegram from Hong Kong about these

discussions (Hong Kong telegram No 1218). This is cryptic.

But it appears to mean that ExCo have decided to go ahead

(subject only to the passage of an amending bill through

LegCo), with an invitation for tenders for both the two new

channels, to be issued about the end of January, or up to a

fortnight later. (I understand that this was what Mr Watt

told Mr Royle during his visit to Hong Kong.) There seems

however to have been an uneasy compromise on the timing of

the third channel, in that the period for the return of tenders

than for this channel is to be somewhat longer for the second.

5.

The Governor expects to make a public announcement on

22 December, but for the meanwhile has asked that we tell

Colonel Stirling (and presumably RTV) no more than when the

invitation to tender is likely to be issued. He has also

suggested that all discussions on TV are better left to him

in Hong Kong.

6. We can at the moment tell Colonel Stirling nothing for

his comfort. He will not be satisfied merely with the lengthening

of the period for the return of tenders for the third channel,

and even this cannot, without ignoring the Governor's request

for confidence, be revealed to him until after the public

statement on 22 December. Nothing is reported by the Governor

about TVB's request for a review of transmission frequencies,

but Mr Watt has denied Colonel Stirling's claim that this has

not already been fully discussed with the company's engineers.

CONFIDENTIAL

/7.

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