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BOND CORPORATION INTERNATIONAL LIMITED

PRIVATE & CONFIDENTIAL

Mr P.K.Y. Tsao

Secretary for Administrative Services

and Information

Government Secretariat

Central Government Offices

(East Wing) 1st Floor

Lower Albert Road

HONG KONG

Annex K

BOND

45th Flool East Towe Bond Centre

Queensway, Hong Kong

Telephone 5.8481668 Telex 82433 BCHL MX Fax: 6-6450341

26th February, 1988

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Dear Mr Tsao,-

I refer to our discussions on 22nd February 1988 when you indicated that Bond Corporation International Limited (BCIL) should revert to you without delay-if it wished to make any additional points in relation to the review of television licence conditions. The issues outlined below were, for the most part, canvassed during_ our meeting and I would be grateful if you would bring these issues to the attention of the Executive Council.

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The impression gained at our meeting is consistent with the understanding held by BCIL at the time of making its investment in HK-TVB shares, namely, that any restructuring of licence conditions would have the objective of ensuring that the underlying policies embodied in the existing legislation are effectively implemented.

BC1L has previously indicated that it believes any restrictions which effectively discriminate against foreign -investors are in the best interests neither of the industry

nor of Hong Kong. Nevertheless, it is acknowledged that in earlier communications, the Government has made it clear that it is committed to maintaining the "spirit" of the Television Ordinance. Presumably, this is in recognition- of the fact that the underlying policies expressed in the- relevant legislation are no longer effective.

It is BCIL's contention that it would be both inappropriate and unfair if, as a result of the current

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