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172435
MDHIAN 2474
RESTRICTED
FM HONG KONG
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HUD 306/4
COP
TOP COPY Q DIST?
TO IMMEDIATE HONG KONG GOVERNMENT OFFICE LONDON
TELNO 0160
OF 171045Z MARCH 88
INFO IMMEDIATE FCO, UKMIS GENEVA
INFO IMMEDIATE HKGOS NEW YORK, WASHINGTON, BRUSSELS, GENEVA INFO SAVING SAN FRANCISCO
HKG/GT/163
RENEWAL OF TELEVISION LICENCES
SUMMARY
THIS TELEGRAM SETS OUT THE BACKGROUND TO THE RECENT ANNOUNCEMENT BY THE GOVERNMENT OF THE CONDITIONS WHICH WILL APPLY TO THE NEW TELEVISION LICENCES TO BE ISSUED W.E.F 1 DECEMBER 1988. IN PARTIC- ULAR, THE PROPOSED CONTROLS ON CORPORATE STRUCTURE AND RESTRICTIONS ON FOREIGN OWNERSHIP ARE EXPLAINED.
BACKGROUND
•
2. THE LICENCES OF TELEVISION BROADCAST LIMITED (TVB) AND ASIA TELEVISION LIMITED (ATV) WILL EXPIRE IN DECEMBER 1988. THE GOVERNOR-IN-COUNCIL HAS ALREADY AGREE IN PRINCIPAL TO RENEW THEIR LICENCES FOR A FURTHER 12 YEARS, SUBJECT TO A MID-TERM REVIEW AND SUCH OTHER TERMS AND CONDITIONS AS MAY BE NECESSARY. VARIOUS TERMS AND CONDITIONS RELATING TO OWNERSHIP AND CONTROL OF LICENSEE COMPANIES, INCLUDING FOREIGN OWNERSHIP, WERE RECOMMENDED BY THE BROADCASTING AUTHORITY (BA) AND APPROVED BY EXCO. ON 15 MARCH 1988.
CORPORATE STRUCTURE
THE
3. WHEN THE PRESENT LICENCES WERE ORIGINALLY GRANTED IN 1973, INTENTION WAS THAT THE LICENSEE COMPANY SHOULD ONLY ENGAGE IN TELEVISION BROADCASTING, I .E. THE PROVISION OF A TELEVISION SERVICE AND SUCH ASSOCIATED TELECOMMUNICATIONS SERVICES AS ARE NECESSARY THE PURPOSE WAS TO PREVENT THE BROADENING OF THE INTERESTS OF A TELEVISION COMPANY TO SUCH AN EXTENT THAT IT MIGHT BECOME SUBJECT TO EXTRANEOUS PRESSURES, REDUCING ITS INDEPENDENCE TO THE DETRIMENT OF PROGRAMME STANDARDS. THERE ALSO EXISTED A DANGER THAT A TV STATION COULD ABUSE ITS VERY POWERFUL POSITION TO UNFAIRLY
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