TNAG-2276-FCO40-3275-Hong-Kong-and-the-media-1991 — Page 104

RESTRICTED COMMERCIAL IN CONFIDENCE

RESTRICTED

COMMERCIAL IN CONFIDENCE

FM FCO

TO IMMEDIATE HONG KONG

TELNO 1073

OF 060945Z JUNE 91

INFO IMMEDIATE BTC HONG KONG

INFO ROUTINE PEKING

124R17 MDHOAN 4962

HA3 301/1

Media

pn.

FROM INFORMATION DEPARTMENT

9

OUR TELNO 1039 AND YOUR TELNO 1788: BBC WORLD SERVICE TELEVISION

AND HUTCHISON

1. MR RICHARD LI AND LORD DERWENT CALLED ON MISS SPENCER ON 4 JUNE TO PRESENT HUTCHISON'S PLANS FOR ASIASAT AND, IN PARTICULAR, FOR THE PROPOSED NEWS AND ENTERTAINMENT CHANNEL FOR WHICH THEY ARE HOPING TO SIGN A CONTRACT WITH BBC WORLD SERVICE TV.

IT WAS AN EFFECTIVE AND PERSUASIVE PRESENTATION. 2. LI BEGAN BY GIVING AN ACCOUNT OF THE COLLAPSE OF HUTCHISON'S PLANS FOR A CABLE TV NETWORK IN HONG KONG AND OF THEIR MORE RECENT AND SUCCESSFUL INVOLVEMENT WITH ASIASAT WHICH HAD BEEN PURCHASED FROM NASA AND REPOSITIONED OVER CHINA, WITH A FOOTPRINT STRETCHING FROM THE GULF TO THE PACIFIC AND A POTENTIAL AUDIENCE REACH OF 55 PER CENT OF THE WORLD'S POPULATION, INCLUDING ALL OF CHINA.

3.

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J

LI MADE IT CLEAR THAT, WHILE HE WAS CONFIDENT OF THE FINANCIAL VIABILITY OF THE OTHER FOUR ASIASAT CHANNELS CURRENTLY PLANNED, HE HAD SOME DOUBTS ABOUT THE VIABILITY OF THE PROPOSED VENTURE WITH THE BBC. THE MAIN PROBLEM WAS THE RESTRICTION BY THE HONG KONG GOVERNMENT ON HUTCHISON'S BROADCASTING IN CANTONESE. WITHOUT THIS THE CHANNEL WHICH HUTCHISON WANTED TO BROADCAST IN ENGLISH, CANTONESE AND MANDARIN WOULD NOT BE ATTRACTIVE ENOUGH TO ADVERTISERS, AND BBC MATERIAL WAS RELATIVELY EXPENSIVE BECAUSE OF RIGHTS PAYMENTS. NEITHER WERE HUTCHISON ALLOWED TO OPERATE A SUBSCRIPTION SERVICE. LI AND LORD DERWENT ARGUED THAT HMG AND HUTCHISON SHARED A COMMON INTEREST IN SEEING THE NEW CHANNEL LAUNCHED. COULD WE THEREFORE HELP TO SECURE THE LIFTING OF THE RESTRICTIONS ON CANTONESE BROADCASTING AND (LESS IMPORTANTLY) ON A SUBSCRIBER SERVICE?

4.

LI ALSO RAISED, BUT DID NOT PRESS, THE QUESTION OF A POSSIBLE FINANCIAL SUBSIDY FROM HMG FOR WSTV FOR THIS VENTURE.

MISS SPENCER SAID SHE COULD HOLD OUT NO HOPE OF THIS (YOU KNOW THE BACKGROUND FROM FCO TEL 74 TO ABIDJAN AND OTHER POSTS). WE WOULD HOWEVER SEE WHAT COULD BE DONE ON THE OTHER POINTS.