question would have to be given notice in writing of not less than 18 months and the licence(s) should be extended to enable such advance notice. It is however unlikely that the licensees would refuse to accept the new terms
conditions.
and
•
Financial and Staffing Implementations
34
on
The implementation of the recommendation royalty will result in higher royalty payments by the two licensees. There will be no staffing implications.
Consultation
35
The views of the
licensees in response to the
recommendations in the BRB Report have been taken into account by the BA.
Public Reaction
36
The public at large is unlikely to be opposed to these proposals, though investors - and particularly those holding shares in BCIL, HK-TVB Ltd. and ATV Holdings Ltd. will react adversely if the perceived effect is a weakening in share prices. There will probably be criticism from some sectors that the proposals might be interpreted as penalising commercial success and discouraging foreign investment, both of which run contrary to Hong Kong's open market principles. It is likely that both HK-TVB Ltd. and BCIL will react strongly and the latter may even threaten to pull out of Hong Kong altogether.
Publicity
37
If
Members
with the agree
is
to proposed
2 above, it
in
recommendations paragraph
hold a press conference on 15 March after the market has closed to announce the terms and conditions of the two new television licences. A Legislative Council brief will be issued at the same time.
fot
the
(The Secretary for Administrative Services and Information, Mr P.K. Y. TSAO, the Principal Assistant Secretary (Broadcasting)/ASIB, Mr W.H. HO, the Acting Commissioner Securities and Commodities Trading, Mrs E. TANG, Commissioner for Television and Entertainment Licensing, Mr D. CHEN, and the Senior Assistant Crown Solicitor/Legal Department, Mr G. MCMAHON, will attend for this item.)
7 March 1988 (ASIB/I 1205C)
COUNCIL CHAMBER
CONFIDENTIAL
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