CONFIDENTIAL

3.

Stirling confirmed that he had gone to

Hong Kong with the personal intention of selling

out his TVB shares and of offering his services

"/

for a public service third channel. The TVB

chasach

Board as a whole hoped that the third programme

would be cancelled. He personally did not.

But he hoped that it would be delayed while you

thought out the implications of public service

broadcasting. We asked Colonel Stirling whether

his anxiety about the third station now took

precedence over the technical problem of the use

of band IV and band V. He replied that the two

were related since the technical problems would

channels

channel

obviously be increased if three stations had to

be accommodated.

But he thought TVB now gave

priority to a review of the third Subject to this, and provided

annel

Provided that the technical problems of inter-

ference and TVB's need to have access to its

existing customers could be met, his Board would

be willing to offer full co-operation, including

Channel co-location, to whoever got the second pagramas.

There might therefore be a quote horse trade

unquote.

4. We commented that the technical questions

were for you. We agreed, however, that we

would convey the offer of co-location to you and

would ask your intentions about the third Channel

Subsequently

Subsequently we have seen your letter

to Stuart of 28 November. The reason for

Stirling's change of tactics is presumably that

he wants both a good price for his TVB shares

032717 E.W.& S., Ltd. 164m 3/67.

/and

NOTHING TO BE WRITTEN IN THIS MARGIN

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