CONFIDENTIAL

To David Stirling.

AIDE

MEMOIRE

54/21:

In April of this year, the Government without

affording our Company, TVB, the sole licencee at this moment,

any opportunity to consult or make suggestions, announced that

it was the intention of Government to grant licences for two

new stations. The granting of one further licence had always

been envisaged from the time that TVB was awarded its licence

in 1966 but the creation of a third commercial station seems

to us and to anyone who knows anything about television to be

absolute folly. It could only result in an immediate

deterioration of standards by all stations. This proposal was, of course, put forward "in the interest of the viewing

public". Government then went on to say that TVB would shortly be offered the renewal of licence for a further period which normally should have been done some months ago. Such renewal

was to be subject to amendments to meet proposed changes in the Television Ordinance and subsidiary legislation. When I was

in London, a short amendment was rushed through to cover Govern-

ment's failure to renew our licence in time. This lapse may have been due to neglect or by design.

There was a period of

five years to think about it! The intention of Government was

to compel TVB to share its transmitter facilities and sites with

the future licencees. These facilities have been developed and

are owned by our Company.

Further it was the desire of Government to force TVB

off some of its frequencies in Band IV and to give them to a

future licencee. It became clear to us that Government would

make these steps as conditions to renew our licence. My entire Board were appalled by these proposals which our professional advisers in London have described as high handed action and

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