CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 2443
OF 2104OOZ JULY 89
32
НКВ
CONFIDENTIAL TO
Q bisi ?
OPY 12
142511
DIS
MDLIAN 7891
HONG KONG TELNO 2348: EXECUTIVE COUNCIL
AT THE PART I MEETING OF THE EXECUTIVE COUNCIL HELD ON 18 JULY, THE GOVERNOR IN COUNCIL ORDERED THAT ·
(A) RADIO TELEVISION HONG KONG (RTHK) SHOULD BE TURNED INTO A PUBLIC BROADCASTING CORPORATION. THE BOARD OF GOVERNORS SHOULD BE RESPONSIBLE TO THE GOVERNOR FOR RUNNING RTHK IN ACCORDANCE WITH POLICIES APPROVED BY THE GOVERNOR IN COUNCIL AND EMBODIED IN LEGISLATION, AND THE BOARD SHOULD COMPRISE ONLY NON-OFFICIAL MEMBERS. THE CHAIRMAN AND MEMBERS OF THE BOARD SHOULD BE APPOINTED BY THE GOVERNOR. RTHK SHOULD BE FUNDED BY MEANS OF A ONE-LINE DISCRETIONARY SUBVENTION WHICH WOULD TAKE INTO ACCOUNT INCOME GENERATED BY RTHK ITSELF, AND WOULD BE SUBJECT TO VOTING OF FUNDS BY LEGCO. EXISTING CIVIL SERVANTS IN RTHK SHOULD BE ENCOURAGED TO BRIDGE OVER TO THE NEW ORGANISATION, BUT SHOULD ALSO BE GIVEN THE OPTION TO REMAIN AS CIVIL SERVANTS. THE TERMS AND CONDITIONS OF RTHK EMPLOYEES IN THE NEW ORGANISATION SHOULD BE BROADLY COMPARABLE TO THOSE IN THE CIVIL SERVICE. RTHK'S OUTPUT SHOULD BE SUBJECT TO REGULATION BY THE BROADCASTING AUTHORITY IN A SIMILAR WAY TO THE OUTPUT OF THE COMMERCIAL LICENSEES. THE CHAIRMAN OF THE RTHK BOARD SHOULD BE IDENTIFIED AS SOON AS POSSIBLE WITH A VIES TO HIS HOLDING AN INFORMAL WATCHING BRIEF OVER THE ADMINISTRATION'S PREPARATIONS FOR THE ESTABLISHMENT OF THE CORPORATION, PARTICULARLY ON THE LEGISLATIVE FINANCIAL AND STAFFING ARRANGEMENTS:
(B) THE CRITERIA SET OUT IN PARAGRAPHS 7 AND 8 OF THE MEMORANDUM ON EXEMPTION OF CHAMBERS OF COMMERCE FROM THE PAYMENT OF PROFITS TAX UNDER SECTION 87, OF THE INLAND REVENUE ORDINANCE, SHOULD BE ADOPTED FOR DETERMINING WHICH ORGANISATIONS SHOULD BE DEEMED TO BE CHAMBERS OF COMMERCE FOR THE PURPOSE OF OBTAINING EXEMPTION FROM THE PAYMENTS OF PROFITS TAX IN PROFITS DERIVED FROM SUBSCRIPTIONS AND MEMBERS' FEES. AN ORDER SHOULD BE MADE UNDER SECTION 87 OF THE ORDINANCE, TO EXEMPT THE ORGANISATIONS LISTED IN PARAGRAPH 10 OF THE MEMORANDUM FROM THE PAYMENT OF PROFITS TAX ON PROFITS DERIVED FROM SUBSCRIPTION AND MEMBERS' FEES. THE FIVE ORGANISATIONS LISTED IN ANNEX B OF THE MEMORANDUM CHAMBERS CONSIDERED ELIGIBLE FOR
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CONFIDENTIAL