TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 112

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CONFIDENTIAL

subject to a determined contestant cutting prices or

bidding high on royalties deliberately to get started.

2. He also argued that even if RTV (HK) were success-

ful in securing a licence by tender the procedure was

unlikely to be launched before November 1972 and would

probably take a year to complete. He spoke very

frankly about the financial position of RTV (HK) saying that

the existing service was barely breaking even and would

certainly be running at a loss from the beginning of

1973.

Continued running at a loss (assuming that

their licence could be extended beyond April 1973)

without a guarantee of getting a new licence would be

very costly and unfair. He believed that the Govern-

ment Working Party on the future of broadcasting

had recognised this and had accordingly recommended that

RTV(HK) should be awarded a licence by negotiation, but

that this recommendation had not been accepted by the

Government.

3. In view of the formal nature of these representa-

tions Wilford said that we would, of course, enquire

of the Hong Kong Government what the situation was.

Grateful for information as soon as possible.

4.

Full record follows.

CONFIDENTIAL

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