BACKGROUND
Mr Mullin's Question is no doubt linked to the current controversy over political donations by foreign businessmen : some press reports have named Mr Li Ka Shing; the prominent Hong Kong entrepreneur, as a contributor to Conservative Party funds. Mr Mullin may be hoping to dig up some politically embarrassing information from the connection between World Service Television and Mr Li.
All the launch finance for WSTV, which was formally incorporated in March 1991, was provided by BBC Enterprises, the BBC's overseas sales arm. In August 1991 WSTV signed an agreement with Hutchvision of Hong Kong, part of the Hutchison-Whampoa group owned by Mr Li, to supply a news and current affairs channel for Hutchvision's Star TV venture broadcasting from the Asiasat satellite over Asia and most of the Middle East.
This is an above-board commercial deal which has proved very successful. It has enabled WSTV to compete with
and outclass - CNN over a large area of the world; and the single WSTV channel is attracting 48% of Star TV's total advertising.
The BBC and HKD, whom we have consulted, are content with the wording of the reply submitted.
Information Department 28 June 1993