TNAG-1695-FCO40-2351-Future-of-Hong-Kong-nationality-1987 — Page 3

It is understood

Pilbara region in Western Australia. that the Bond Group has announced that it is going to set up in Australia a subsidiary to hold

subsidiary to hold the Group's media interests. Extracts from the 1985 Bond Corporation report are at Annex E.

Television Ordinance

6

The provisions of the Television Ordinance for licensing companies to broadcast wireless television were designed to prevent a television station from falling under foreign control. The provisions which appear to be relevant to a takeover by foreign interests are as follows :

(A copy of these provisions of the Television Ordinance is at Annex F)

(a) Section 2 is the interpretation provision and the definitions of "disqualified person",

"exercise control of a company" and "ordinarily resident in Hong Kong" would appear to be relevant.

(b)

(c)

(a)

(e)

Section 10

10 is relevant by virtue of the provision of section 11(1) (a) which provides that the Licensee shall at all times comply with paragraphs (a) (i) of section 10.

Section 11(1)(b) is relevant because of the possibility of a change in the effective control of the Licensee.

Section 11A(2) is relevant to consider only if there is to be any alteration in the majority voting shareholding of the Licensee, because notification would then have to

be made to the Television Authority.

Section 14 is

relevant,

exists in these proposals

if there cause for

the Governor in Council to revoke the licence of the Licensee.

(£)

Section 37 is relevant because it sets out the financial penalties which the Television Authority may impose.

7

BCIL has made no formal approach to the Television Authority on its purchase of HK-TVB shares. It is not clear whether a takeover of the whole share capital of HK-TVB

ever contemplated. A preliminary

was

CONFIDENTIAL