TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 57

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12.

on the current basis, Rediffusion would incur cash

losses at an average rate of £20,000 a month between

April and December 1973, and at a rate of £40,000

a month during the calendar year 1974. Thus, if the

new forecasts in regard to timing prove correct, we

could incur cash losses of over £600,000. The

alternative would be to close down our cable broadcasting

operation; but that would lead to the dispersal of

our long-established television broadcasting team of about 500 loyal employees and in the process we should

lose most of the advantages we have as prospective

operators of the second station.

It is Rediffusion's considered view that the Hong Kong

Government has been guilty of the most inordinate delays in policy decision-making and now look like incurring appalling delays in implementation of decisions made. Despite repeated assurances of its sympathetic understanding of Rediffusion's position, it

is the case that the Government has never kept to a

single forecast date or time-table, since the Working

Party was first formed. If further delays are allowed to happen Rediffusion believes the following consequences

will ensue:-

(a) TVB's monopoly will be extended de facto

from November 1972 to either January 1974,

mid-1974, or January 1975. This would

enable TVB to continue to earn, without

competition, airtime revenue currently running at £210,000 per month and certain

to increase as the number of sets able to

watch only their service grows. It would be

impossible to over-estimate the degree of

entrenchment that would be conferred on TVB

by monopolistic revenue of this order, thus

making effective competition by a new

broadcaster extremely difficult.

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