NOTHING TO BE WRITTEN IN THIS MARGIN
interest, to revoke Rediffusion's current
licence and grant a new one. If, however,
you wish to expedite the enactment of this
legislation for reasons not connected with
copyright in broadcast television it would be
possible to proceed to its enactment without
delay with the omission of Clause 4 which
could be enacted later. No legal objection
is seen to this course.
8. The combined impact of the measures you propose on the interests of Rediffusion are
that such that it seems unlikely further exchanges with the company could lead to their agreement; and accordingly it is anticipated that there will be questions in Parliament, attention being concentrated on the difference between the
positions of the Company in Hong Kong and in
the U.K. It is therefore necessary to examine very carefully and establish :
9.
(a) what justification there is for the
measures, particularly the grounds for revoking Rediffusion's licence
in the public interest;
(b)
any grounds the Company might have
for claiming that it has been inequitably treated.
As we understand the position Rediffusion
is in competition with Hong Kong Television
Broadcasts Limited as an originator of programmes. If there is no copyright in broadcast television, Rediffusion is placed in a very favourable position vis-à-vis Television Broadcasts Limited whose programmes it can
relay at will; for obvious technical reasons
Television Broadcasts Limited is in no position to tap Rediffusion's programme without the latter's co-operation and agreement. Rediffusion can relay, without restriction and without contributing to the cost of production,
the whole service of Television Broadcasts
Limited; it can presumably substitute its own advertising material and thereby derive considerable profit. The position is different in the United Kingdom where wired rediffusion
services do not originate programmes but merely relay the services of B.B.C. and I..A.; they do not compete with the broadcasting
/ services
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