XN000022-1989-08-22 — Page 3

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TUESDAY, AUGUST 22, 1989

NEW LICENCE GRANTED TO COMMERCIAL RADIO

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THE GOVERNOR IN COUNCIL TODAY (TUESDAY) GRANTED A NEW LICENCE TO THE HONG KONG COMMERCIAL BROADCASTING CO. LTD. ("COMMERCIAL RADIO") COMMENCING ON AUGUST 26, 1989.

FOLLOWING THE GOVERNOR IN COUNCIL'S APPROVAL ITS APPLICATION FOR A NEW LICENCE, COMMERCIAL RADIO TO COMPLY WITH THE TELECOMMUNICATION { AMENDMENT}

TERMS COMMENCED ON AUGUST 15, 1989, AND WITH THE ITS NEW LICENCE.

AND CONDITIONS

IN PRINCIPLE OF HAS TAKEN STEPS ORDINANCE, WHICH OF

AND

A GOVERNMENT

"THESE STEPS INCLUDE RE-ORGANISING ITS CORPORATE STRUCTURE MAKING CHANGES то ITS ARTICLES OF ASSOCIATION, SPOKESMAN SAID.

"COMMERCIAL RADIO HAS ALSO CONFIRMED THAT IT IS IN COMPLIANCE WITH THE NEW REQUIREMENTS IN RELATION TO DISQUALIFIED PERSONS (THAT IS SHAREHOLDERS WHO MAY HAVE A CONFLICT OF INTEREST) AND UNQUALIFIED PERSONS (THAT IS SHAREHOLDERS WHO DO NOT FULFIL CERTAIN QUALIFICATIONS),'

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RESIDENTIAL

THE SPOKESMAN POINTED OUT THAT THE NEW LICENCE WOULD FOR A 12-YEAR PERIOD FROM AUGUST 26, 1989 TO AUGUST 25, 2001, TO RENEWAL BY THE GOVERNOR IN COUNCIL ON OR AFTER AUGUST 26,

"THE NEW BASIS FOR THE CALCULATION OF ROYALTY, NOT COMMENCE UNTIL OCTOBER 1, 1989 IN ORDER TO FALL IN PAYMENT SCHEDULE, HE SAID.

BE VALID SUBJECT

1995.

HOWEVER, WILL WITH THE NEW

"UNDER THE NEW SYSTEM, ROYALTY IS PAYABLE IN RESPECT OF QUARTERS BEGINNING JANUARY 1, APRIL 1, JULY 1 AND OCTOBER 1.

"COMMERCIAL RADIO HAS UNDERTAKEN TO CONTINUE то PAY ROYALTY ACCORDING TO THE PRESENT SYSTEM FROM AUGUST 26, 1989 UNTIL THE END OF SEPTEMBER 1989.

"THE NEW LICENCE CONDITIONS SHOULD ENSURE THAT THE AIRWAVES

THE ARE USED TO THE BENEFIT OF

COMMUNITY AND SHOULD IMPROVE THE REGULATORY SYSTEM.

"I HOPE THAT AS A RESULT THE COMMUNITY CAN LOOK FURTHER IMPROVEMENTS IN THE QUALITY OF COMMERCIAL RADIO IN THE YEARS AHEAD, THE SPOKESMAN ADDED.

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FORWARD TO BROADCASTING

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