6.
There are three main difficulties so far:
(a) language restrictions under the terms of their
licence they cannot broadcast to Hong Kong in Cantonese. Eventually they want to broadcast simultaneously in English, Mandarin and Cantonese, using a multiplex system, and Cantonese broadcasts are essential if they are to reach their intended audience not only in Hong Kong but among the overseas Chinese. Mr Li pointed out that without this audience the service may not be viable;
(b) ban on subscription. The three entertainment
channels will be self-supporting through
advertising, but no-one wants to underwrite news services. Without the possibility of
subscription, these channels may not succeed commercially;
(c) there is the question of BBC third party rights,
which are very expensive.
Mr Li hoped that HMG might bring its good offices to bear on the lifting of (a) and (b). Britain did still have great influence, and it was to our interests to have the service up and running well before 1997. The Hong Kong Government may be developing its decision on the language in case a cable TV bid is renewed, but by then it might be too late politically. He hoped that an agreement with the BBC might be reached in two weeks, and said that FCO/HMG support would help. Mr Li also asked about government financial support for BBC WSTV, at least as far as his project was concerned. Miss Spencer did not hold out
any hope of this, but undertook to see what we could do on the other points.
ADMAIX
Jenny Ranson
Information Department