TNAG-2247-FCO40-3230-Business-interests-in-Hong-Kong-Cable-&-Wireless-1991 — Page 14

CONFIDENTIAL

XCC(91)194

(b)

(c)

(d)

it will provide healthy competition for the new subscription TV licensee;

it will not be inequitable towards the new subscription TV licensee because he will know from the beginning that he will have to face this degree of competition. In addition, the option will be open to him to come to a financial arrangement with the satellite TV operator or operators to deliver their Cantonese language services as part of his programming as an added attraction to his subscribers; and

the continued restriction on free-to-air Cantonese programming will allow us to keep faith with TVB and ATV who accepted 12-year licences in 1988 on the understanding that no additional free-to-air local broadcaster would be allowed to commence operations during their licence period. We feel that it would be wrong in principle to introduce such a drastic change into the broadcasting environment before completion of the review which we now propose.

We would propose to review the restriction on Cantonese language free-to- air satellite TV in conjunction with the early mid-term review of the licences held by ATV and TVB.

Bill of Rights ("BOR”) Implications

25

The Attorney General's Chambers have advised that it is important in formulating and working out the policy to have regard to the BOR implications. In order to justify, and to be seen to justify, restrictions on the rights of everyone conferred by Article 16 of the BOR Ordinance to freedom of information through the media of their choice, there must be a pressing social need for the restrictions and they must be in proportion and rationally connected with, as well as being the minimum necessary for achieving, the objectives. The Administration is remaining alert to, and is convinced it will be able to satisfy, the need to justify limited and reviewable restrictions on Cantonese, MMDS frequencies, foreign uplifting of subscription satellite programmes for reception within the Territory as well as on charging subscriptions for the minimum periods necessary to assist in achieving the objectives of a diverse, healthy and stable broadcasting environment.

Executive Council