TNAG-0330-FCO40-366-Visit-of-Parliamentary-Under-Secretary-of-State--Anthony-Roy-1972 — Page 76

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they would otherwise incur heavy cash losses (they are already

in a difficult financial position) or might have to cease

operating on the expiry of their current licence in April 1973.

However, they were unofficially given to understand in Hong Kong

that they were strongly favoured as operators of the second

wireless television service and were told by the Colonial

Secretariat that tenders for the new services would be put out

in September. This would have meant an on-air date of mid 1973.

RTV (HK) accepted that the decision to call for tenders could not

be reversed, and felt they were in a strong position to tender

successfully. They therefore placed orders for a considerable

amount of new equipment.

3.

Rediffusion again made representations this time to

Mr Royle personally in July this year in view of further delays

in the Hong Kong Government's timetable which meant that the call

for tenders would not be made until the end of the year.

Rediffusion's case in essence was that the further delay, which

would entail an on-air date at the earliest of early or mid-1974,

would cost them at least £100,000 and much more if the proceedings

were further protracted. A copy of Rediffusion's memorandum

is attached at Annex A.

The Colonial Secretariat saw fit to

reply direct to RTV (HK); a copy of their reply is also attached

at Annex B.

4. Part of the reason for the further delay was that the

Government's proposals envisaged the sharing of transmission sites

in future; TVB(HK) Rediffusion's main competitor

-

opposed to these proposals.

were strongly

Rediffusion on the other hand

/favoured them

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