CONFIDENTIAL

previous plans to link subscription television and the

second local telecommunications network. It was earlier

understood that the winner of cable television franchise

(HKCC) would also be permitted to install and operate a

second telecommunications network. While some potential

subscription TV operators may wish to do both, others may

not.

Satellite Television

Hutchinson were granted, in December 1990, a license to "up link" satellite television from Hong Kong. They have been transmitting a preview channel since May 1991, their

first full channel (sports) since August and their second (music) since 14 September. They have recently obtained the Broadcasting Authorities approval for up link of the BBC

world service TV in mid-November 1991. Their proposal to broadcast BBC world service radio through their transponders

on Asiasat 1 will be submitted for consideration by ExCo in

October.

Hong Kong have undertaken to review the instriction

imposed on their license with regard to Cantonese language programming and subscription as part of the current subscription TV review.

8.

RODAIH/3

CONFIDENTIAL

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