TNAG-0351-FCO40-387-Future-of-broadcasting-in-Hong-Kong-1972 — Page 172

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TO OFFER FULL CO-OPERATION, INCLUDING CO-LOCATION, TO WHOEVER GOT THE SECOND CHANNEL. THERE MIGHT THEREFORE BE A QUOTE HORSE,

TRADE UNQUOTE.

40 WE COMMENTED THAT THE TECHNICAL QUESTIONS WERE FOR YOU. WE AGREED, HOWEVER, THAT WE WOULD CONVEY THE OFFER OF CO-LOCATION TO YOU AND WOULD ASK YOUR INTENTIONS ABOUT THE THIRD CHANNEL.

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SUBSEQUENTLY WE HAVE SEEN YOUR LETTER TO STUART OF 28 NOVEMBER. THE REASON FOR STIRLING'S CHANGE OF TACTICS IS PRESUMABLY THAT HE WANTS BOTH A GOOD PRICE FOR HIS TVB SHARES AND TO TAKE PART IN A SEPARATE ''PUBLIC SERVICE'' PROJECT. IN SPEAKING TO YOU, TO JUDGE FROM THE REMARK ATTRIBUTED TO STUART, HE SEEMS TO HAVE TELESCOPED HIS PREVIOUS CONVERSATION WITH THE DEPARTMENT. WE MADE IT PLAIN THAT THE QUESTION OF BANDING WAS A TECHNICAL ONE FOR YOU, BUT SAID THAT WHATEVER THE SOLUTION ADOPTED, FURTHER DELAY IN THE TENDERING PROCESS WOULD WORK UNFAIRLY AGAINST THE INTERESTS OF THE SECOND CHANNEL CONTRACTOR.

6. STIRLING HOPES TO SEE MR ROYLE NEXT WEEK, GRATEFUL FOR TELEGRAM IF DECISION TO POSTPONE TENDERING FOR THIRD CHANNEL IS TAKEN BY THEN, PLEASE ALSO REPORT HOW THE PROJECTED TIME TABLE FOR TENDERING WHICH WATT EXPLAINED TO MR. ROYLE IS FARING.

DOUGLAS-HOME

FILE S:

HKIOD

IAD

PS/MR. AMERY

PS/MR. ROYLE

SIR E. NORRIS

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