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see it as part of a plot to maintain British influence in Hong Kong after 1997 by setting RTHK up as a pro-British station. In sum, it will be a political not an economic issue in their eyes; they have not reacted negatively so far, but that may well be simply because no proposal has been put to them.
If we
7. A negative Chinese response after consultation would put us in a difficult position. Hong Kong telno 3235, in
response to our telno 1834, discusses this problem. decided to drop the corporatization we would be heavily criticised in Hong Kong and the UK for kow-towing to China and undermining the freedom of the media in Hong Kong. There might be criticism in Parliament. If we decided to go ahead with corporatisation despite Chinese opposition, the Chinese would be bound to react badly, accusing us of bad faith in the consultation process and perhaps withholding cooperation in other areas where we need their help.
Moreover they could take measures to undermine our unilateral action on corporatization, eg making it difficult to staff the corporation. If they succeeded, it would damage the credibility and authority of HMG and HKG in Hong
Kong.
8. We need to consider this carefully before approaching the Chinese. If we conclude that the Chinese response would be negative, and that all our options would then be
unpalatable, it may be less painful to drop the idea now. Specifically we need further assessment of the following
areas:
a) Chinese perceptions of RTHK, its current role and
staff;
b) Chinese intentions for RTHK, if any, after 1997;
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