NOTHING TO BE WRITTEN IN THIS MARGIN
If the situation is Korrecity described
in paragraphs 9-11
above)
it appears that
there
protection to broadcast television, there cannot be any possible ground for claiming that the Hong Kong Government is infringing rights already granted under the licence since (as noted in paragraph 5) the licence itself expressly declared that it was subject to any copyright which might exist in matter received by means of Rediffusion's broadcast receiving station. On the other hand, your intention to revoke the licence in the public interest and to grant a new one will involve the extinction of existing exclusive rights to erect some types of aerial systems. there can be no doubt about the clear public interest in your proceeding as you propose and it would seem that the Company were disposed to recognise this in stating (in their letter of 12 October, 1967) "we respect the fact that the public interest requires special consideration under the circumstances likely to come about", even though they qualified this by the statement: "In saying this, we do not wish it to be understood that any requirement of the public interest is ground for derogating from our Licence rights". However, to the extent that the Company might be able to establish damage through the extinction of these exclusive rights or their exercise by others, it seems that it might have a case for compensation, notwith- standing that the rights are denied to it in the public interest and for reasons of public policy. In discussion with Mr. Hobley it was mentioned that the new licence might, in some respects, be more favourable to the Company than the present licence. If this is the case, there is perhaps a possibility that the issue of damages could be disposed of by concessions made in the course of negotiations about the terms of the new licence. It would seem preferable, in all the circumstances, to attempt to amend the licence by negotiation. You may have given further consideration to the question of damages which is discussed in
paragraph 9 of Executive Council Memorandum XCC(68) and, if so, we would like to know your conclusions.
/ 13.
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