5. However, on 7 August 1989, the Taiwanese authorities announced that they would not accept registration of Hong Kong copyright works, because of the lack of reciprocal protection in Hong Kong for Taiwanese copyright owners. The major local copyright interests in Hong Kong have urged the Government there to ensure protection of their works in Taiwan; they estimate that otherwise they could suffer losses of around HK$400 million per annum. Hong Kong have accordingly requested that the 1985 Order be now extended to them. Unfortunately, the Copyright (Taiwan) Order cannot now be extended to Hong Kong as it has been revoked. However, it is still possible to extend to Hong Kong Section 32 of the Copyright Act 1956, which will enable the Governor to make an order in Hong Kong having effect equivalent to the UK Copyright (Taiwan) Order. The attached draft Order will make the necessary provision.

Hong

6.

There is no obligation upon us to consult the Chinese about this proposal, but in view of the obvious sensitivity of the issue the Hong Kong Government intend to advise the New China News Agency in Hong Kong at the appropriate time. Kong Department are content.

The terms of the draft Order have been the subject of consultation with Hong Kong who are content with it.

1.

The Order is subject to annulment in pursuance of a Resolution of either House of Parliament.

8.

AW8ABQ

Awatts

A D Watts

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