Messrs. Hui Sai Fun, F.S. Li and G.A. Pilgrim said that they would support the scheme. Mr. Li added that as the Consortium would be taking a large interest in the company, they must have their own management team and this would have adverse effects on morale from the staff and the artistes. The Chairman said that it was not the intention of the Consortium as understood by Mr. R.M. Denny. Sir Sidney added that Mr. S.C. Huang had indicated that Management would welcome advice and assistance in the areas of finance, marketing and engineering. Mr. L.M. Thompson said that this point had been stressed with them and they had indicated that they were aware of the fact that they were not competent to run a Chinese television service and their intention would be to give assistance rather than making major changes.
In reply to Mr. E.J.V. Hutt, the Chairman said that it was not clear at this stage how the debts would be. absorbed by Rediffusion as there was the consideration of tax benefits. For operational purposes the debts would be eliminated from the accounts of the company.
Mr. John MacKenzie asked that as the arrangements would only release the company from the interest burden, how would the Consortium expect to turn the company around. Mr. L.M. Thompson said that the Consortium believed that their expertise in television, marketing and management in some areas could assist the company and they also believed that some mechanical operations of the station could be shared. They also felt that they could assist in the purchase of overseas programmes. Mr. Thompson went on to say that the Consortium would arrange for finances for $30 million as working capital for the company and the finance charges of the amount would be carried by the company. The Chairman pointed out that though the facility would be arranged, interest would occur only if losses continued and the facilities utilised.
Mr. S.C. Huang said that he had had no formal discussion with the Consortium representatives apart from social contacts, but he gathered that they were all professional people, some with experience in television. They had seen our facilities and were impressed with our operations. Mr. Huang went on to say that we had been weak in sales and we needed assistance in finance and engineering and he felt that support in these areas and also in the purchase of overseas programme materials could be provided by the Consortium members. Mr. Huang, however, expressed doubt as to the suggestion of sharing facilities.
Mr. Huang added that as Managing Director he welcomed the proposal and as a broadcaster, he needed to find out their views on Chinese television. Mr. Huang said that he was willing to give it a go and he would need to inform his senior executives of the matter.
4
No comments yet.
Private notes are available after approval.