CONFIDENTIAL COMMERCIAL IN CONFIDENCE
CONFIDENTIAL
COMMERCIAL IN CONFIDENCE
HIB. 30
307/1
REC
FM HONG KONG
TO IMMEDIATE FCO
TELNO 960
OF 151015Z JUNE 93
INDE
16 JUN 1993
DESK OFFICE
TOP COPY Q DIST?
Меня Media (105
157356
MDHIAN 4874
NEWS CORPORATION'S AMBITIONS IN ASIA.
SUMMARY
1.
RUPERT MURDOCH BRIEFED ME ON 11. JUNE ABOUT HIS NEGOTIATIONS TO
TAKE A STAKE IN TVB AS PART OF HIS PLANS TO ESTABLISH A SATELLITE-
BASED TELEVISION SERVICE IN ASIA. MURDOCH WANTED TO KNOW WHETHER WE
WOULD HAVE ANY DIFFICULTIES WITH WHAT HE HAD IN MIND. I GAVE HIM NO COMMITMENT AND SAID THAT WE WOULD HAVE TO LOOK AT THE DETAILS, EMPHASISING THAT NEWS CORPORATION WOULD HAVE TO MEET OUR REGULATORY REQUIREMENTS.
DETAIL.
2. RUPERT MURDOCH TURNED UP IN HONG KONG ON 10 JUNE FOR
NEGOTIATIONS WITH SIR RUN RUN SHAW AND THE KWOK FAMILY ABOUT NEWS
CORPORATION TAKING A MAJOR STAKE IN TELEVISION BROADCASTS LIMITED (TVB). TVB IS THE DOMINANT FREE-TO-AIR TELEVISION STATION IN HONG
KONG AND SIR RUN RUN SHAW AND THE KWOK FAMILY ARE THE MAJOR
SHAREHOLDERS.
3.
MURDOCH ASKED TO SEE ME AT SHORT NOTICE AND ON 11 JUNE
HE BRIEFED ME ON HIS PLANS. HE SAID THAT HE WANTED TO ESTABLISH NEWS CORPORATION IN THE ASIAN TELEVISION MARKET AND THAT HE PLANNED TO DO SO WITH A SATELLITE-BASED SERVICE. HE EXPLAINED THAT HE HAD ALSO
BEEN TALKING TO K S LI ABOUT TAKING A STAKE IN STAR TV (WHICH CARRIES THE BBC WORLD SERVICE IN ASIA) BUT FOR THE PRESENT THESE TALKS HAVE STALLED BECAUSE, ACCORDING TO MURDOCH, RICHARD LI (K S LI'S SON AND THE CHIEF EXECUTIVE OF STAR TV) IS DEMANDING TOO HIGH
A PRICE.
4.
THE NEGOTIATIONS WITH TVB LOOK MORE PROMISING AND MURDOCH WAS
ANXIOUS TO KNOW WHETHER NEWS CORPORATION'S PRESENCE IN HONG KONG
WOULD BE WELCOME. I SAID THAT I WAS IN NO POSITION AT THIS STAGE TO COMMENT ON HIS PLANS OTHER THAN TO EMPHASISE THAT WHATEVER HE HAD IN MIND WOULD HAVE TO MEET OUR REGULATORY REQUIREMENTS,
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CONFIDENTIAL COMMERCIAL IN CONFIDENCE