RESTRICTED

FM LISBON

TO ROUTINE FCO

TELNO 261

OF 071539Z APRIL 92

RESTRICTED

HKC

02013

اناف

064156

MDLIAN 7452

J. Ramen, or.

2.

Incand

Macau

8814

INFO ROUTINE PEKING, HONG KONG, UKREP JLG HONG KONG, BTC HONG KONG

LUSO-CHINESE JLG, 16-19 MARCH

SUMMARY

1.

PORTUGUESE PROBLEMS WITH CHINESE OVER TV AND RADIO SIMILAR, THOUGH NOT IDENTICAL, TO THOSE IN HONG KONG. CHINESE CONTINUE TO PRESS ON LOCALISATION. SOME MOVEMENT ON AIR TRAFFIC AGREEMENTS.

DETAIL

2.

HEAD OF POLITICAL SECTION CALLED ON CATARINO, HEAD OF THE PORTUGUESE SIDE OF THE JLG, ON 6 APRIL TO COMPARE NOTES ON THE RECENT MEETINGS OF THE SINO-BRITISH AND LUSO-CHINESE JLGS.

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3. CATARINO SAID THAT, LIKE THE UK, THE PORTUGUESE WERE IN DISCUSSION WITH THE CHINESE ABOUT MACAU'S TV AND RADIO SERVICES. THESE ARE ALREADY CONSTITUTED AS A PRIVATE COMPANY (TDM), THOUGH THE MACAU GOVERNMENT HAS A 50.5 PERCENT SHAREHOLDING AND FINANCES THE COMPANY'S ANNUAL DEFICIT OF ONE HUNDRED MILLION HONG KONG DOLLARS. THE MACAU AUTHORITIES WANT TO RESTRUCTURE THE COMPANY, KEEPING ONLY 7 OR 8 PERCENT OF THE SHARES THEMSELVES BUT MAINTAINING REPRESENTATION ON THE BOARD. THEY HOPE THAT THE TV AND RADIO SERVICE CAN THEN BE SPLIT INTO SEPARATE CHINESE AND PORTUGUESE STATIONS, THE FORMER RUN ON A COMMERCIAL BASIS AND THE LATTER AS A PUBLIC SERVICE IN COOPERATION WITH PORTUGUESE TV (WHICH IS ESTABLISHING A SATELLITE SERVICE FOR PORTUGUESE-SPEAKING AREAS AROUND THE WORLD). THE PORTUGUESE GOVERNMENT WOULD THEN CONTINUE TO SUBSIDISE THE PORTUGUESE SERVICE AFTER 1999 (BUT AT MUCH LOWER COSTS THAN CURRENTLY), THUS ENSURING THAT IT DID NOT DISAPPEAR.

4. THESE PROPOSALS WERE DISCUSSED INFORMALLY DURING THE LUSO-CHINESE JLG IN LISBON ON 16-19 MARCH. THE CHINESE HAVE INSISTED THAT THEIR AGREEMENT WOULD BE NECESSARY BEFORE THE PORTUGUESE COULD IMPLEMENT THEM. THE PORTUGUESE, FOR THEIR PART, HAVE SAID THAT THEY ARE OBLIGED ONLY TO KEEP THE CHINESE INFORMED. THE SITUATION IS COMPLICATED BY THE FACT THAT UNDER

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