the ultimate boundary. Using the coastline ratio derived from the respec- tive lengths of the eastern China and Ryukyu shores, the equidistant line boundary could be adjusted to allocate the south zone in a 64:36 ratio in favour of China.
The East China Sea could be divided into north and south zones as above and the equidistant line designated as the boundary in the north zone. The bound- ary could then extend along the equidis- tant line southwest from the Japan- South Korea JDZ to about 125 degree east, 28 degree 15 minutes north. Thus the JDZ would be the area bounded on the northwest and southwest by an equidistant line based on Japanese own- ership of the Senkakus, on the north- east by an equidistant line based on Chinese ownership of the islands, and on the south and southeast by the mid-
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HILD 306/4
channel line of the Okinawa Trough.
China and Japan would agree to joint development of both north and south zones and to apply the equidis- tance principle to the remaining area modified by the ratio of coastlines, ig- noring the Okinawa Trough.
China and Japan would agree to joint development of the area bounded by the equidistant line between the Chinese mainland and Japan, the 200-m isobath or the mid-channel line, and the southwestern edge of the Japan-South Korea JDZ.
In the Yellow Sea, the delimitation of the continental shelf between South Korea and China is not complicated by contested islands. Seoul is anxious to negotiate a settlement with Peking. China has expressed a willingness to negotiate, but nothing has come of it. First, a boundary agreement with Seoul
Television turnaround
Government's decision to reverse broadcasting policy draws fire
would include Australians such as Bond. Now, however, a local will have to be the holder of a "permanent iden- tity card." This has been branded by cri- tics as a singularly racist document as it excludes anyone not "wholly or partly of Chinese race" not born in Hongkong, but includes any person of Chinese race, whatever their nationality, resident in Hongkong for seven years.
By Emily Lau and Christopher Marchand in Hongkong
n an apparent surrender to political pressure from Peking, the Hongkong Government is introducing new rules to limit foreign ownership of TV stations, and to bar TV licensees from being owned by a holding company or to hold subsidiary companies unconnected with TV broadcasting. The changes have been criticised as against the spirit of free enterprise and likely to affect busi-❘ ness confidence by analysts as well as TV interests. Perhaps more signific- antly, they reverse a government deci- sion on broadcasting made in late 1986 after a lengthy enquiry.
The government's 15 March an- nouncement will affect the renewal of the licences of the two commercial sta- tions, Hongkong Television Broad- casts (TVB) and Asia Television, which expire on 1 December 1988. The two stations have to comply with the new terms and conditions for their li- cences to be renewed for 12 years.
The Television Ordinance currently requires that 51% of shares be owned by local people or companies ordinarily re- sident in Hongkong, and that the major- ity of directors be British subjects ordi- narily resident in Hongkong. The recent
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The Secretary for Administrative Services and Information, Peter Tsao, told the REVIEW that control on foreign ownership was necessary so that TV sta- tions would not "fall into hostile hands." This is said to be a reference to Taiwanese interests, but critics claim the move was targeted at critics of Pe- king, rather than at Taipei.
The move has negative conse- quences for Bond who built his TVB
up stake at a HK$14.00 (US$1.80) a share, a price which analysts said could only be justified by ultimate control. Now Bond is to be denied the right to go for con- trol. Analysts criticise this redrawing of the ground rules, and fear the move could damage Hongkong's appeal as a centre for foreign investment.
n November 1986, the government
decision would limit to no more than rejected proposals by its own Broad-
10% shares owned by any single foreign shareholder, though it would not re- quire Australian investor Alan Bond to reduce the almost 30% shareholding he built up in TVB last year.
The definition of "foreign" is also to be changed to make it conform more closely to China's perceptions. Origi- nally, local ownership was any British subject ordinarily resident in Hong- kong. This was subsequently widened to any Commonwealth citizen which
casting Review Board (BRB) to sepa- rate TVB's broadcasting subsidiary from the holding company in order to prevent "abuses" caused by the cor- porate links. The then attorney-gen- eral, Michael Thomas, told Legco: "The government... proposes that the structure, ownership and control of TV licences should continue to be governed by existing policies and the spirit of existing legislation." However, the gov-
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is not urgent for Peking the oil poten- tial is not great and China has oil re- sources elsewhere in undisputed areas. Secondly, for China, negotiating with South Korea might be interpreted as de facto recognition of two Koreas.
For these reasons, China would pre- fer to leave boundaries with South Korea unresolved. Actual confronta- tion over the issues is unlikely, and with the warming of relations be- tween China and South Korea, China's discoveries of oil and gas within 80 km of the equidistant line may stimulate re- solution of the boundary issue, possibly employing a joint venture, or joint deve- lopment of the disputed area. To start the process, South Korea might agree to modi- fy its equidistance stance to accommo- date China's position, thus focusing joint development on the area between China's silt line claim and an equidistant line
R
ernment said the Broadcasting Author- ity could in future propose to change the law if there were genuine grounds for
concern.
The chairman of TVB, Sir Run Run Shaw, said the recent decision rep- resented a complete reversal of the gov- ernment's public commitment in 1986.
Tsao said TVB had outsmarted the government for many years by creating a holding company which owned the TV station as a subsidiary.
The reasoning behind the govern- ment's decision in 1986 remains un- clear, but it is understood that Tsao, who was the policy secretary at the time, was sent away to Brussels as a result of a power struggle between him and a fac- tion led by then chief secretary Sir David Akers-Jones.
Tsao is believed to endorse the BRB recommendations and he also has the support of Exco and Legco member Allen Lee, who is chairman of the Broadcasting Authority. The recent changes might be the result of attempts by Tsao and Lee to overturn what was decided in 1986. Whatever the explana- tion, they show how susceptible the gov- ernment is to pressure, to passing fancy or to its own disunity.
TVB, the territory's largest and most profitable TV company, would be espe- cially hard hit by the changes. Earnings growth from broadcasting is maturing, so additional profit sources have been developed in programme licensing and home videos, entertainment promo- tion, publishing and tour operations. A holding company was created to own the diverse operations, which held the licensee TV company as a wholly owned subsidiary.
TVB shareholders might benefit from any spin-off from these high growth assets. But TV broadcasting, the core asset, would be shorn of other earnings support, at a time when cable TV might make heavy inroads into the traditional viewing market.