TNAG-1077-FCO40-1327-Broadcasting-in-Hong-Kong-proposed-BBC-relay-station-1981 — Page 33

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officials that they would welcome greater audibility for BBC transmissions to China. I also doubt whether we need to spell out (particularly for the Governor's benefit) the possible consequences of a change of leadership in China. If that were our only criterion, we would do little business in Hong Kong at any time.

2. There is another aspect to this question. George Howard, the Chairman of the BBC, has, as you know, the impression that the Governor spoke in optimistic terms to him about the possibility of a Hong Kong contribution. In his latest letter to the Secretary of State, Mr Howard has taken the line that he was given the 'true' picture, while we are only getting the 'official' one. If, therefore, we fail to make the best possible case on the BBC's behalf, and this gets back to the BBC, George Howard is quite capable of accusing us of mishandling the negotiations.

3. The foregoing notwithstanding, I personally doubt whether even our best presented case will be sufficiently strong to persuade the Hong Kong Government to make more than a token gesture. But provision of the land at a reduced premium would be better than nothing, and we should therefore try to be as positive as we are able.

28 August 1981

cc: Mr McLaren

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