CONFIDENTIAL
XCC(93)148
relaxed regulatory regime should help Hong Kong develop as a regional broadcasting hub. Members of the Authority feel that the proposed regime outlined in this memorandum would not have any adverse effects on Hong Kong viewers.
PUBLIC REACTION
21
We expect mixed reactions. International broadcasters and the general public would appreciate Government's initiative to relax the framework which would develop Hong Kong into the dominant regional broadcasting hub bringing significant economic benefits to Hong Kong. The general audience would surely welcome a wider variety of choice. Existing terrestrial operators may perceive that the waiving of royalty- type payment is unfair to them. We would need to explain to them the rationale for the different regulatory frameworks for satellite and terrestrial broadcasting licensees. Hutchvision may demand amendments to its licence to disapply certain restrictions now relaxed and we would be prepared to examine their request. The Chinese Government may view the proposals with serious suspicion worrying that the medium would be used for "cultural invasion" purposes. We would try to alleviate this concern by briefing them fully.
PUBLICITY
22
In order not to arouse the suspicions of the Chinese about our sincerity in conducting the consultations described in paragraph 18 above, we do not propose to make any public announcement nor do we propose to issue a Legislative Council Brief in the meantime. A press line will, however, be prepared to handle media enquiries. Subject to the views of the Chinese, we intend to publicize widely the new licensing criteria and make vigorous efforts to promote Hong Kong as the broadcasting hub of Asia.
Executive Council