CO537-5142 — Page 106

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7.

ish. Slated.

The Chinese language does not seem initially to be con-

Lobo's son, when in America recently in this connection, interested certain parties and one advertising agent there, who se clients include Coca Cola, Lucky Strike cigarettes and General Motors, booked certain of its schedules and it is computed that up to the 29th July some 50% of the station's annual availability had been earmarked, the basic figure being $36 400 per hour per day per month (U.S.s100.)

8.

Insofar as Lobo himself is concerned, I think his chief interest in the matter is purely the one of financial return, and the organisers are talking in terms of a specific profit on the full first year's working of 1,000,000 patacas,

9.

When we come to consider Radio Hong Kong, we find the

· B.B.C. is not assisting financially to the extent originally promised in the new office promises in Electra House, and that proposals to install 3/7/k/w powers costing £750,000 appear to have been shelved through a difference of opinion on policy between the Foreign Office and the Colonial Office.

10.

I am indebted for much of this information to Mr. D. Hardy, present Programme Director of Radio Hong Kong, whose name should under no circumstances be quoted. He has resisted the inducement of a princely offer of salary (well in excess of his present one) from Lobo to be the Programme Director for Macao Station, and will, I understand, be leaving the Colony about May of next year when his period of secondment to Radio Hong Kong from the B.B.C. terminates.

11.

I have folt it necessary to bring this matter to your attention taking as a criterion the long term view of United Kingdom exporters to this territory, since, theoretically, American com- petitors taking time on this new radio project will enjoy an advantage over their United Kingdom counter-parts.

12.

Radio Hong Kong has at long last decided to investigate the possibilities of commercial radio, and to arrange a Forces pro- gramme for the weekend sponsored by local firms. In this connection. please see paragraphs 4, 5 and 6 of the attached minutes of the Broadcasting Advisory Committee secured from confidential sources.

13.

You will no doubt in cvaluating the respective merits and demerits in Radio Hong Kong and the new Macao Station give consider-

tion to (a) the present limits in the range of Radio Hong Kong, (b) the hesitancy that would appear inevitable when it is under a Government department with a limited budget and viewpoint vis-a-vis (a) the Macao Enterprises which in actual practice may be found too grandiloquent and optimistic, (b) the possibility that Rediffusion may relay the Macao programmes thus stimulating the purely local market, and (c) the possibility affecting both radio stations that they may well lose their potentials and ordinaces in South China should the Communists ultimately confiscate radio sets.

16.

On a purely policy basis however, may I ask whether I could receive some early clarification as to whether or not you consider the matter should be brought to the notice of substantial United Kingdom to rests intimately concerned in this area?

WPM/BHP.

Enclosure.

am, Sir Your obedient Servant,

W:P.Montgomery.

United Kingdom Trade Commissioner.