7
RTV have taken substantial risks and invested very large sums of money (including all profits to date) in fixed assets in Hong Kong, in pioneering and developing television. Our experience in many overseas territories in relation to franchised operations, has never led us to believe that, upon expiry of initial licence, Government would not grant some further licence/franchise or other means of allowing continued existence and recovery of investment. Putting that further licence or other means to the risks of competitive tender surely carries the seeds of purpose-defeat and, far from being fair, is the very
reverse.
We repeat, this is no "clean slate" situation, any more or less than would be the case upon expiry of a utility franchise or, for that matter, a Crown Lease.
It would be certain, we believe, that if Government were to pursue a course of not re-licensing utility (or similar) licencees who have behaved well, those contemplating utility. or similar ventures would have to ensure complete amortisation of investment within the initial licence period
at, the inevitable cost of the consumer and of the community economy which would clearly have inflationary effects.
7.
In an attempt at brevity we have not elaborated on the points made. We would be happy to provide any further information, and detailed workings of figures quoted, that you may requira.
We trust Sir, that you will believe that the points we have made deserve the closest consideration by. those concerned.
We are, Sir,
Your obedient servants,
for & on behalf of REDIFFUSION (HONG KONG) LTD.
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R.J. WARREN MANAGING DIRECTOR
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