CONFIDENTIAL AND PERSONAL

File

OFFICE OF THE BRITISH SENIOR REPRESENTATIVE.

SINO-BRITISH JOINT LIAISON GROUP HONG KONG

AR Paul Esq

Hong Kong Department FCO

191/2

25 June 1991

Jean Alan,

RTHK CORPORATISATION

1.

2.

It

You may like advance warning of another cloud on the horizon.

For some years the Hong Kong Government has been considering what to do about the structure of RTHK, which, contrary to appearances, still remains a Government department. In 1986, after considering proposals for corporatisation, ExCo decided that it should remain part of the public service as an executive arm with a Board of Governors appointed by the Governor and subject to various financial and administrative arrangements. took until 1989 to take this decision any further. After some toing and froing ExCo considered the matter again in July 1989: not surprisingly, in the emotional atmosphere of that time their views had changed. ExCo then thought that RTHK should be put as far as possible from Government in order to prevent Chinese interference after 1997. They therefore advised for full corporatisation. This decision was given considerable publicity at the time. It did not elicit a reaction from the Chinese side, but in my view probably only because the Chinese were preoccupied with other things at the time.

3. A bill to provide for corporatisation has now been drafted, and there have been extensive negotiations with the staff involved, who seem to be broadly in favour of corporatisation, though with some reservations about the financial terms involved.

4. I attended a meeting on Thursday at the Recreation and Culture Branch to discuss the Chinese aspects of this. All concerned recognised that we are dealing with a major change to the Hong Kong Government structure only six years before 1997 in

area of considerable sensitivity to the Chinese, broadcasting.

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