TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 54

6.

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Its

The Government eventually established a Working Party

on the Future of Broadcasting, early in 1970. deliberations continued for well over a year and its

recommendations were submitted to the Government in

October 1971. They included an unequivocal proposal

that Rediffusion should be granted, by private treaty, a franchise to operate a second wireless television station which, it was recommended, should be established when TVB's five-year period of exclusivity ended. The Working Party also made recommendations as to how

shared transmission facilities should be erected on

sites currently leased to TVB and as to the allocation

of frequencies.

1.

The Government announced its decisions six months

later in April 1972 (only seven months before the expiry of TVB's period of exclusivity). These decisions came as a grave disappointment to Rediffusion, for the recommendation in regard to the award of a franchise by private treaty was turned down and it was announced

that tenders were to be called for.

8.

Rediffusion's disappointment arose largely because of the prospect of further delays, during which time its existing business was in acute danger of bleeding to death. However, some comfort was provided by official assurances of a time-table involving tenders being called in September 1972 and closing in December, with a decision in March 1973 and a possible on-air date in early summer 1973. Rediffusion was also given unofficial

intimation of the fact that its claims were regarded as

being overwhelmingly strong and that the broad-based

consortium of local interests which it had formed to

apply for the franchise, together with proposals for a subsequent public issue of shares, were favourably regarded. In view of the evident strength of Rediffusion's

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