CONFIDENTIAL
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Hong Kong Government put on it, but the BBC were basing their
calculations on the lower estimate. Mr Ridley asked when the
BBC would need to start on the project. Mr Dennay said that if,
in accordance with the present schedule, it were not ready until
1986/87, the project would be on the border linesof viability in
view of the fact that the lease on the New Territories endediin
1997. Mr Ridley said that if the BBC entered into a lease, which in
Hong Kong were usually for fifteen years, it would demonstrate
confidence in the future of Hong Kong. The British Government were
confident of the future themselves, but the Chinese were not yet
ready to talk turkey. We did not want to put a foot wrong by
granting a lease which would go beyond the period of the head lease!
on the New Territories, but on the other hand it would be wrong to
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take a lease which ended within a day or two of the expiry of the head
lease. Mr Dennay thought that this pointed to bringing forward the
project. Mr Muggeridge said that it was Mr Howard's impression that
the first necessity was a positive commitment by the FCO to the
relay station. Mr Ridley said that hitherto there had been no
possibility of money being available before 1985/86, but now, in
principle, the BBC were free to make a start. Mr Muggeridge asked
if it were realistic to think of possible Hong Kong Government help.
Mr Ridley thought that Mr Howard had gained too optimistic an
impression.
The Hong Kong Government might be prepared to go some
way towards the cost of the land, but we needed to demonstrate the
benefit which would accrue to them. Was there any way in which the
BBC could help local broadcasting services? Mr Muggeridge was quick
to point out that the BBC was already assisting Hong Kong broadcasting
through the Transcription Service. The Hong Kong services took a
vast amount of material, but this would no longer be available.
Mr Dennay said that the Hong Kong network also relayed a lot of material
from the BBC World Service. The quality of the signal which they received would be greatly improved if the relay station were built,
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