TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 70

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Mr Crowgon

crowyon

1.

CONFIDENTIAL

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I mentioned to you briefly yesterday that 2 of the Directors of Rediffusion had asked to see Mr Royle about the aifairs of their subsidiary in Hong Kong.

2. Mr Forrester telephoned this morning to say that an appointment had now been made for the 2 Directors - Sir John Spencer Wills and Mr Hugh Dundas to call on Mr Royle at 10 am on Thursday 20 July. Mr Forrester also said that they had been asked to send us a note on the matter they wished to raise with the Minister. He hopes to have this before the weekend.

3. This gives us much more time to prepare any necessary briefing, but in view of the turn of events, I doubt whether Mr Royle will need much from us.

4. Briefly, the position is as follows. Last April Rediffusion feared that their company in Hong Kong would be squeezed out of existence. They had a large investment there and they felt strongly that the Hong Kong authorities were being unreasonable. At that time we took steps which would have enabled us to take speedy action in the event of Rediffusion making formal representations to us. (An account of what was said to us by Rediffusion is at 11 in this file.)

5. We later heard that the situation had changed and that the Hong Kong Government were in fact making arrangements which would enable RTV (HK) to remain in existence (see my note for the record at 12).

6.

To bring the story up to date Mr Warren, the Managing Director of RTV(HK) who is now on leave, telephoned Mr Wilford the day before yesterday to say that as a result of the decision of the Government last April they had been informed in writing by the Colonial Secretariat that tenders were to go out in September for return by the end of the year with the award of the new licences being made fairly soon in 1973. On the strength of this the company had ordered equipment worth a million pounds. (I think this is right but we can check the facts when we receive Rediffusion's note.) Now, they have been told that because some of the people concerned were on leave and because the matter was rather more complicated than had at first been thought, it would not be possible to arrange for the award of the new licences for some a nsiderable time. Mr Warren suggested that it might be as long as 2 years before they could get their new station operating. This was a very serious matter and he thought that the Directors of Rediffusion in the United Kingdom would wish to make representations to HMG.

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CONFIDENTIAL