TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 141

CONFIDENTIAL

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XCC(72)14

Control.

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The choice of licensees of the right character is an important factor in the maintenance of satisfactory standards under a commercial system. To a certain extent this is provided for by sections 10 and 11 of the Television Ordinance. Section 10 requires that the majority of the directors of a licensee, and all the principal officers, should be British subjects ordinarily resident in Hong Kong and that these directors must participate actively in the licensee's business. Section 11 limits the influence that can be exerted by certain "disquali- fied persons". The working party recommends the retention of these two sections but proposes a slight relaxation of the "disqualified person" rule under certain circumstances (recommendations 3 - 4).

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The working party goes on to make two further recom- mendations that directly concern the character of a licensee. Firstly (recommendation 5) it is proposed that at least 25% of a licensee's shares should be owned by local interests on the grant of a licence and that this proportion should be increased to at least 51% within four years. Secondly (recommendation 7) it is proposed that at least 25% of a licensee's voting shares should be listed on a recognised stock exchange. It is proposed that TVB should also be required to comply with this condition within four years from the date of the renewal of its licence. This proposal is in line with conditions imposed by law on certain other public utility com- panies. Recommendations 6 and 8 are designed to ensure compliance with these new conditions.

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The working party considers the existing control structure consisting of the Governor in Council, the Television Authority and the Television Advisory Board to be satisfactory and recommends its retention (recommendation 9). It also recommends that the Director of Information Services should continue to be the Television Authority and chairman of the Television Advisory Board (recommendations 10-11). It considers, however, that public representation on the Board should be increased by the appointment of a further member of the public to provide for equal official and public membership (recommendation 12). It also considers that there should be a more systematic review of the content, quality and balance of programmes than has been possible hitherto and recommends the appointment of an advisory panel by the Board and the provision of sufficient staff, equipment and funds by the Government (recommendations 13 14). The submission of regular reports by the Board and an enhance- ment of the status of the reports is considered desirable (recommendation 15). The opportunity is also taken (recommendations 17 - 18) to provide for a necessary increase in the Television Authority's powers and to abolish too rigid an interpretation of the programme proposals contained in an application form (recommendation 16).

Coverage

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The working party, noting that wireless television trans-Ia missions already cover 92.4% of the population (although not of the geopherol graphical area) and that the implementation of existing proposals will increase this figure to 95.7%, recommends that the power to grant exemp- tions from the requirement to achieve total coverage should be transferred

CONFIDENTIAL