TNAG-1999-FCO40-2846-Meeting-between-Douglas-Hurd--Secretary-of-State-for-Foreign-1990 — Page 25

CONFIDENTIAL

2.

HKCC's Satellite TV Concerns

- The launch of the AsiaSat I satellite in April by a

consortium comprising

Cable and Wireless plc, Hutchison

and CITIC has opened the way for pan-Asian television

Hutchison has booked sufficient capacity

broadcasting.

to transmit six television channels to all areas covered

by AsiaSat I, including Hong Kong.

-

HKCC claims that without heavy Government restrictions,

there will be a

single satellite

proliferation of SMATV systems (i.e.

antennas serving large numbers of

receive the

multiple residential units) set up

to

Hutchison, and other, programming at no cost other than

paying for the reception dishes. HKCC contends that this

would cream off its premium customers, thereby destroying

the financial viability of the cable venture.

HKG's Position

Our

existing policy is to liberalise restrictions on the

reception of satellite TV. HKCC was well aware of this

when it took up the franchise.

However, we have no wish to see the collapse of the cable

project.

CONFIDENTIAL