CONFIDENTIAL
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 4195
OF 14105OZ NOVEMBER 88
INFO PRIORITY PEKING
MKD 306144
FOR HUM, HKD, FROM GOVERNOR
74
145210 MDHIAN 1633
TOP COPY
om....
PEKING PERSONAL FOR AMBASSADOR/POLITICAL COUNSELLOR
RENEWAL OF TV FRANCHISES
AS YOU KNOW, DEACON CHIU, CHAIRMAN OF ATV, WAS CHARGED ON 10 NOVEMBER WITH TWO COUNTS OF CONSPIRACY TO FALSELY ACCOUNT. CAME JUST AS WE WERE ABOUT TO CONSIDER THE RENEWAL OF THE FRANCHISES OF THE TWO TV STATIONS.
THIS
2. THERE WOULD BE OBVIOUS PROBLEMS, IN TERMS OF PUBLIC PERCEPTION, IN AWARDING A NEW LICENCE TO ATV AT A TIME WHEN THE CHAIRMAN IS FACING CHARGES FOR COMMERCIAL CRIMES. WE THEREFORE SUGGESTED TO CHIU'S TWO PARTNERS THAT ATV COLLECTIVELY SHOULD CONSIDER THE WISDOM OF CHIU DISTANCING HIMSELF FROM THE AFFAIRS
OF THE COMPANY FOR THE DURATION OF THE TRIAL.
3. ATV HAVE TODAY SENT US A COPY OF LETTER FROM CHIU TO HIS PARTNERS STATING THAT, WITH IMMEDIATE EFFECT, HE WILL DISTANCE HIMSELF FROM THE AFFAIRS OF ATV AND TAKE NO PART IN ITS MANAGEMENT, AND THAT HE WILL STEP DOWN AS CHAIRMAN AND DIRECTOR ON 1 MAY 1989. WE BELIEVE THAT THE REASON FOR THIS DELAY IS TO
GIVE HIMSELF TIME TO SELL HIS SHARES IN ATV.
4. THE RENEWAL OF THE TWO TV LICENCES IS DUE TO BE DISCUSSED IN EXCO TOMORROW, 15 NOVEMBER.
WILSON
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