TNAG-1817-FCO40-2578-Broadcasting-in-Hong-Kong-1988 — Page 3

Subject to recommendations (d) and (e), a majority of the directors

directors of a licensee company shall be permanent residents of, and ordinarily resident in, Hong Kong.

Royalties

(i)

All gross receipts of the subsidiary companies of a licensee company shall be deemed to be the licensee's receipts and shall be subject to payment of royalty.

B

이

BACKGROUND AND ARGUMENT

Power to Revoke Licences (Recommendation (a))

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Under Section 14 of the Television Ordinance, Chapter 52 (Annex B), the Governor in Council at present is empowered to revoke a television licence

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(a) by giving 18 months' notice following an inquiry by the BA ordered by the Governor in Council (Sections 14(1) & (2) and 16(1)); or

(b) at any time if the licensee fails to pay royalty or any penalty imposed, has been fined on at least three occasions, or goes

goes into liquidation (Section 14(3)); or

(c) if the security of the

(Section 14(3)).

The BA has examined the

territory SO requires

desirability desirability of adding

a

further clause whereby the licence could be revoked on the grounds of public interest. Similar powers are provided for in the Telecommunications Ordinance (Chapter 106) and the Banking Ordinance (Chapter 155) (Extracts at Annex C. } The BA considers that, given the pervasive influence of television, the Governor in Council should have the power to revoke a licence in the public interest.

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However, taking into account the following

(a)

the current political sentiments;

(b)

the difficulty in defining "public interest";

(c)

the inevitable accusation seeking excessive

powers

that the Government is to suppress freedom

of

expression; and

CONFIDENTIAL