8
2 August 1993
Roland Boyes Esq MP House of Commons
LONDON
SWLA OAA
HKB 190/2
Foreign & Commonwealth
Office
London SW1A 2AH
L2 AUG 199 The Parliamentary Under Secretary of State
Dear Roland
Thank you for your letter of 23 July to Douglas Hurd enclosing one from your constituent Mr A G Harkness of 34 Barmston Court, Columbia Washington, Tyne and Wear concerning allegations in an article in the Observer of 27 June. Alastair Goodlad is the Minister responsible for Hong Kong, and I am replying in his absence overseas.
Since the publication of that article, events have clearly demonstrated that there was absolutely no foundation in the insinuation that the Governor of Hong Kong was in alliance with Rupert Murdoch to promote News Corporation's bid for TVB. background to this issue is that News Corporation had proposed taking a share in TVB, a local Hong Kong television broadcaster. As the proposed share in TVB exceeded the statutory voting control limits in respect of foreign ownership and cross media ownership of local terrestrial broadcasters, approval to waive these limits was required from the Broadcasting Authority and the Governor in Executive Council. However, before a decision was taken News Corporation formally withdrew its offer.
Separately, News Corporation has concluded a deal to take a 63.6% shareholding in Hutchvision (BVI), the owner of 48% of the shares of Hutchvision Hong Kong Limited, which is licensed to operate Star TV, the locally based, satellite-delivered, regional television service. Under the existing legal and policy framework for satellite television uplinked from Hong Kong, there is objection to this transaction proceeding. The Hong Kong Government takes a more flexible attitude towards foreign and cross-media ownership of satellite television licensees than it does to local terrestrial television licensees. This is because it takes into account the fact that satellite broadcasters, like Star TV, are regional broadcasters based in Hong Kong, whose services may also be received in the whole pan Asian region whereas local terrestrial broadcasters, like TVB, are licensed to provide a service solely for a Hong Kong audience.
I am returning your constituent's letter.
Your
mark
Mark Lennox-Boyd