TNAG-1555-FCO40-2119-Broadcasting-in-Hong-Kong-1986 — Page 19

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A decision in principle to renew for a full term the licences of the existing stations is likely to receive mixed comments. The decision will be welcomed by some, in particular the licensees themselves. Some social service, political and other organisations, as well as former members of the BRB, may however criticise the Government for failing to grasp the opportunity to find more worthy licensees. There may be a mixed reaction from Legislative Councillors who in the adjournment debate supported the principle that "whatever measures are adopted by the Government, they must enhance, not reduce, competition within the broadcasting industry.

If however the Government can amply demonstrate that a full term renewal will in fact boost the stations and encourage ATV to become more competitive, criticism is likely to be reduced. It is considered that the public in general are unlikely to hold any strong views on the decision.

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Retention of the 15 year licence period will be regarded as a sensible decision by the business community and by the broadcasters themselves. A minority may criticise the decision and argue that there is no justification for renewing existing licences for such a long period. It will be necessary for the

the Government to explain the political arguments for a full term renewal and, at the same time, point out that the licences will be subject to mid-term review. Former members of the BRB are likely however to remain critical of the decision.

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Overall the proposals will be seen a rejection of some key recommendations of the BRB Report. Although there may be criticism that the Government has wasted the time and effort of the BRB, the proposals will be welcomed by many as reasonable and pragmatic.

PUBLICITY

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Immediately following the Executive Council decision a comprehensive press statement will be released, and this will be followed by a press conference at which the Administration will explain in further detail the rationale behind the decisions reached.

ADVICE SOUGHT

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(a)

Members are asked to advise

whether the existing pattern of television licensees, each operating one Chinese and one English language service should continue for the time being (paragraph 11 above);

CONFIDENTIAL