TNAG-1987-FCO40-2820-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 159

Letter to HKCC & HCV

Our Ref: ASIB/I 13/1243C(89) Pt.3

Tel.No.:

5-8102351

Annex B

18 July 1989

SUBJECT TO LICENCE

Dear Sir,

Since the submission on 28 February 1989 of your bid for the Cable Television licences the Government has carefully assessed the contents of your bid, and has considered its own position on the regulatory and operational environment in which it expects the CTV system to operate. In order that your application may be considered further, your acceptance of certain additional conditions is now sought. The Administration is prepared to enter into immediate discussions with you.

you. I I propose

that we meet on

and thereafter as appropriate. I therefore set out hereunder

hereunder the points on which we would be seeking acceptance and/or clarification:

(a)

Royalties

Commencing from the grant of the licences, the licensee will be required to pay royalty, calculated on the following scale but subject to an overall ceiling of 10%, on gross receipts from subscription and advertising (including items such as installation charges, other service charges, extra outlet charges, converter rental, duct rental and sponsorship):

First $500 million @ 18%

Next

$500 million @ 3%

Next

$500 million @ 6%

Next $500 million @ 9%

Next $500 million @ 12%

Exceeding $2,500 million @ 15%

The royalty will be payable on an annual basis.