TNAG-2276-FCO40-3275-Hong-Kong-and-the-media-1991 — Page 63

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From: R H G Davies

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(19)

Mr Paul

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Information Department

Date: 1 July 1991

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Mr Harris

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Immin's unberquent meeting with the regulation.

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Miss Spencer

1.

(13)

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Some points and comments to follow up the meeting with Hutchison' and WSTV on 27 June, the record of which has already been

distributed.

2. I had a further word with Mr Irwin when he called in again alone at our invitation the next day (Miss Spencer had intended to see him too, but was not able to). First, he gave me some details of the deal with Hutchison, which he finds very satisfactory from the BBC's

point of view. Hutchison will put up front the money to cover the extra cost of providing the service for the "Star TV" news and information channel. (There will be regular world news bulletins, weather reports, financial reports and other bits and pieces.) WSTV

will have free access to Asiasat, and access to Hutchison's sales

and marketing network. Apart from this the BBC's revenue will come

from profit participation 33% while the service is in English and

Mandarin, 40% if a subscription service can be started, and a

further 2% if Cantonese is added. The point about the last figure

is that Hutchison see their profits as coming largely from

Cantonese, and will be conceding only a small extra proportion of

them. Mr Irwin also disclosed that the deadline for subscription

and Cantonese is April 1992. If they are not available by then the

BBC lose the right to the extra 9%.

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