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2. The only significant development has been the appointment

of Mr Jim Griffiths, Head of Pay TV/Home Video at the

Murdoch-owned Fox Corporation, as the new Chief Executive of

Star TV. News Corporation have so far given no indication

of their attitude or intentions regarding the channel which

WSTV provide for Star. However Mr Phillis, Managing Director of the World Service, and Mr Irwin, Chief Executive of WSTV,

are to meet the new Star TV management in Hong Kong in early

September.

3. The BBC's strategy is to work up a viable alternative to Star for delivering their service in Asia and the Middle East, both as a safeguard in case of emergency and to strengthen their negotiating position in any future dealings with Star over their channel, even if there is no immediate

threat to it.

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4.

The PUS has received a letter (copy attached) from the

Chairman of the BBC on the subject: Mr Hussey expresses

concern but does not ask for any action to be taken. (We shall be submitting a reply next week for the PUS to send on

return.)

RH G Davies

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