TNAG-2006-FCO40-2854-Cable-television-in-Hong-Kong-copyright-protection-1990 — Page 8

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2067

OF 05050OZ JULY 90

CONFIDENTIAL

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OUR TELNOS T478 AND 1760: CABLE TV COPYRIGHT PROTECTION

WE SHOULD BE MOST GRATEFUL FOR AN EARLY RESPONSE TO OUR TELNO 1478.

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MAIN

40

LIMITED

HKD

NEWS DEPT

ADDITIONAL

MR WHOMERSLEY

(LEGAL AID)

NNNN

DISTRIBUTION

41

INFO DEPT

LEGAL ADVISERS

1

PAGE CONFIDENTIAL

$

Introduction

Wharf

CONFIDENTIAL

,

-

Briefing Note on Cable Television

Visit of Sir V.K. Pao this all6

Pa

®

BY

590

The

ON YK Pera ук

Tit ad in (cable)

ل

u ato

(Holdings)

"ד.-

Ltd has A 28% share in Hong Kong Cable

Communications Ltd (HKCC): the company selected last year

to

cable provide

telecommunications network to

television and

a

second local

provide non-franchised

services in Hong Kong.

(The

Hong Kong Telephone Co.

holds

franchise a

to

local provide

public telephone

service by wire until 1995,

and

Hong Kong

Telecom

International

has an

exclusive

international

telecommunications

right to provide most

services for Hong Kong

until 2006.)

- The project is forecast to involve investment of around

HK$5 billion, and HKCC's decision to proceed after the

June 1989 events was a timely demonstration of investor

confidence in the future.

Other shareholders in HKCC are: US West (25%); Sun Hung

Kai Properties (27%); Shaw Brothers (10%); and Coditel of

Belgium (10%).

Hutchison

and

British

Telecommunications

also put in a

bid last year but after 4 June they indicated that they

were no longer interested in the project.

CONFIDENTIAL

HKCC's Satellite TV Concerns

2

- 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

broadcasting.

Hutchison has booked sufficient capacity

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 antennas serving large numbers of

proliferation of SMATV systems (i.e.

to

receive the

multiple residential units) set up

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

....

IV