TNAG-1555-FCO40-2119-Broadcasting-in-Hong-Kong-1986 — Page 314

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CONFIDENTIAL

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Rather, it may be socially desirable to follow the BRB's recommendation and adopt a

and adopt a shorter licence period in order to emphasise that the two stations will be subject to stricter control in future.

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The Administration considers however that to adopt the BRB's proposal of an eight year licence and renew at the end of 1988 licences which would expire in 1996 would lend an unncessary political dimension to the question of future licence renewals,

renewals, and that it would therefore be sensible to aim for a licence renewal in 1988 which would carry the broadcasting industry over the transitional period without disruption. There are three options which would achieve this

aim:

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the

(a) to renew the licences in 1988 for a 10 year period expiring in December 1998. This would carry the licensees over transitional period and would mean that the question of post-1988 broadcasting licences could be considered by the

present Administration in 1995 or 1996 prior to the change of government;

(b)

(c)

to renew the licences for a twelve year period expiring at the end of the year 2000, which would enable the future S.A.R. Government to consider the question of further licence renewal after that date;

to renew the licences for a 15 year period expiring in December 2003. This would provide the maximum degree of continuity for the licensees and would mean that the consideration of further licence renewals would not coincide so nearly with the change of government.

On balance, the Administration recommends that the existing licences should be renewed for a period of 15 years. This would carry the licences well over 1997 and would give the new S.A.R. government ample time to consider the question of further licence renewal. However, to maintain a degree of control over the licensees, it is further recommended that the licences be subject to review in 1994, with a view to amending the licence conditions where necessary.

FINANCIAL AND STAFFING IMPLICATIONS

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If the proposal to create a Broadcasting Authority is approved the Television and Entertainment Licensing Authority which would become the executive arm of the new Authority, will

CONFIDENTIAL