TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 42

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TO PRIORITY GOVERNOR HONG KONG TEL 10 682 OF 24 JULY

FOLLOWING FROM PARLIAMENTARY UNDER SECRETARY OF STATE.

YOUR TELEGRAM NO 640: WIRELESS TELEVISION LICENCES.

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1. SIR JOHN SPENCER WILLS, CHAIRMAN, AND MR HUGH DUNDAS, MANAGING

DIRECTOR, OF REDIFFUSION LIMITED CALLED ON ME ON 22 JULY, THEY HAD PERVIOUSLY SENT ME A MEMORANDUM ABOUT THEIR PROBLEMS IN HONG KONG:

COPY FOLLOWS BY BAG. I AM GRATEFUL TO YOU FOR THE BACKGROUND

BRIEFING IN YOUR TELEGRAM 578.

2, WILLS SAID THAT HE WAS ANXIOUS NOT TO EMBARRASS THE HONG KONG

GOVERNMENT BY MAKING REPRESENTATIONS TO ME. NEVERTHELESS, HE WAS

VERY CONCERNED ABOUT THE PAST AND LIKELY FUTURE DELAYS OVER THE

GRANTING OF A WIRELESS TELEVISION LICENCE. (YOU WILL SEE THAT THE MEMORANDUM MAKES THE POINT THAT AS RECENTLY AS MID-JUNE RTV (HK)

WERE GIVEN ASSURANCES THAT CALLS FOR TENDER WOULD BE PUT OUT IN

SEPTEMBER AND THAT THE ON-AIR DATE COULD THEN BE AS EARLY AS SUMMER

1973.) WHILST HE STILL THOUGHT THAT THE AWARD TO RTV OF A LICENCE

BY PRIVATE TREATY AS RECOMMENDED BY THE WORKING PARTY WOULD HAVE BEEN

BY FAR THE BEST SOLUTION, HE HAD TO ACCEPT THAT THE DECISION TO

CALL FOR TENDERS COULD NOT NOW BE REVERSED. ALTHOUGH RTV WERE IN

A STRONG POSITION OT TENDER SUCCESSFULLY, THE DELAY INVOLVED WOULD

COST THEM AT LEAST £139,099, AND MUCH MORE IF IT WAS PROTRACTED,

HE UNDERSTOOD THAT THERE WAS NOW A PROPOSAL TO SET-UP AN INDEPENDENT

TRANSMITTING AGENCY, HE THOUGHT THIS WAS NOT NECESSARY AND WOULD LEAD TO YET FURTHER DELAYS. TVB WERE, NOT UNEXPECTEDLY, MAKING DIFFICULITIES OVER SITE-SHARING, FOR THEIR OWN COMMERCIAL ADVANTAGE.

HE UNDERSTOOD HOWEVER THE TVB ONLY HELD THE SITE ON A FIVE YEAR LEASE

WHICH WOULD EXPIRE WHEN THEIR WIRELESS TELEVISION MONOPOLY RAN -

CUT IN NOVEMBER: THE HONG KONG GOVERNMENT THEN HAD POWER TO GIVE

SIX MONTHS' NOTICE OF INTENTION TO VARY THE USE OF THE SITE. IF TVE

WERE THEN INSTRUCTED TO USE THE SITE ON A BASIS OF SHARED

FACILITIES WITH RTV, HE THOUGHT THAT THE TWO COMPANIES COULD WORK SATISFACTORILY TOGETHER. DESPITE THEIR COMMERCIAL RIVALRY, DAY TO

-DAY WORKING RELATIONS WERE NOT TOO BAD. HE WAS SURPRISED THAT THE

DIRECTOR OF INFORMATIONS SERVICES, WHO IS OVER HERE ON LEAVE, DID

NOT APPEAR TO BE AWARE OF THE TERMS OF TVB'S LEASE. HE ALSO THOUGHT

IT UNFORTUNATE THAT THE CONTROLLER OF TELECOMMUNICATIONS HAD GONE ON

FIVE MONTHS' LEAVE WITHOUT A REPLACEMENT: THIS WAS LIKELY TO CAUSE

FURTHER DELAYS.

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