TNAG-1690-FCO40-2340-Hong-Kong-legislation-regarding-the-control-of-publications--1987 — Page 6

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Den Mir Fits gentobe,

STATUS OF HONG KONG UNDER UK/CANADA FILMS CO-PRODUCTION AGREEMENT

1. Mr Drummond has asked me to reply direct to you on the points raised in your minute of 4 August.

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2. I take it that the first question is whether a film made with a "Hong Kong producer" is a "co-production film" for the purposes of the UK/Canada Films Co-Production Agreement of 12 September 1975 (UKTS No 8(1976)), as amended by the Exchange of Letters of 9 July 1985 (UKTS No 50 (1986)). Article 1(1) of the Agreement reads as follows:

"a "co-production film" shall be a film made by one or more United Kingdom makers (hereinafter referred to as "the United Kingdom co-producer") in conjunction with one or more Canadian makers (hereinafter referred to as "the Canadian co-producer") and made in accordance with the terms of an approval given by the competent authorities of each Contracting Party acting jointly."

3. This definition requires three conditions to be fulfilled. First, the film has to be made by one or more "United Kingdom makers". Second, it has to be made in conjunction with "one or more Canadian makers". Third, it has to be made in accordance with the terms of a joint approval. We are concerned only with the first condition. The Agreement contains no definition of the term "United Kingdom maker". I note, however, that paragraph (4)(a) of the Annex requires the United Kingdom co-producer (ie the United Kingdom maker) to -

"fulfil all the conditions relating to his status which he would be required to fulfil if he were the only maker, in order to be entitled to payments from the British Film Fund Agency".

I do not know what these conditions are, but it would seem to me that the first question to consider is whether your "Hong Kong producer" fulfills these conditions. If he

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