TNAG-2079-FCO40-2959-Hong-Kong-press-coverage-and-reports-1990 — Page 21

HONG KONG CABLE COMMUNICATIONS LIMITED

香港有線播 薄 混

July 28, 1989

The Honourable K. Y. Tsao, C.B.E., C.P.M., J.P.

Secretary for Administrative Services

and Information

Government Secretariat

Central Government Office (East Wing)

1/F, Lower Albert Road

Hong hong

Dear Sir,

Cable Television and

the Second Telecommunications Networks

We refer to your letter addressed to Mr. M.P. Elphick dated 18 July 1989 and our interim reply on 24 July 1989, subsequent to which we held a series of meetings to reach agreement on various points. This process has now enabled us to offer this comprehensive reply.

I begin by reaffirming our shareholders' total commitment to this long term project. Should HKC be granted the licences, we are fully committed to doing what is necessary to make the project a complete success for all concerned, namely the Hong Kong public, the Hong Kong Government and the shareholders and staff of Hong Kong Cable.

We reply to each point in this letter.

(a) Royalties

We accept.

(b) Financial Commitments

We accept.

Installation and Subscription Charges for the Basic Package

J

(c)

We will adhere to the following installation subscription charges for the first three years. amounts quoted are nominal dollars.

and basic

All dollar

21st Floor, Wheelock House. 20 Peager Street. Hong Kong. Telephone 5-8442113 Facsimile 5-8459931