TNAG-2768-FCO40-3985-Hong-Kong-and-the-media-interviews--press-briefings-and-the--1993 — Page 31

CONFIDENTIAL

FM HONG KONG

CONFIDENTIAL

MUB 301/1

RECEIVED IN

- Ver 1993

ISTRY

TO IMMEDIATE FCO

TELNO

1422

DFSK

OF 031016Z SEPTEMBER 93

INDEX

INFO IMMEDIATE PEKING

p.r. Med 143

021366 MDHIAN 3675

PA

REGISTRY Action Taken

& SIG O

RUPERT MURDOCH AND THE SCMP/WAH KIU YAT PO

1. THERE HAVE BEEN RUMOURS IN THE STOCK MARKET HERE ALL DAY TO THE EFFECT THAT RUPERT MURDOCH HAS AGREED TO SELL HIS STAKE IN THE SOUTH CHINA MORNING POST AND ITS CHINESE LANGUAGE SISTER PAPER THE WAH KIU YAT PO. THE RUMOURS ARE TRUE. THE KWOK FAMILY, WHICH OWNS A MAJOR STAKE IN OUR MAIN TELEVISION STATION (TVB), HAS AGREED TO PAY US DOLLARS 500 MILLION FOR MURDOCH'S SHARES. YOU MIGHT NOTE THAT THIS IS ABOUT THE AMOUNT MURDOCH WILL NEED TO BUY HIS STAKE IN

STAR TV.

2.

WE ARE LOOKING AT THE IMPLICATIONS OF THE SALE FOR THE EDITORIAL LINE OF THE TWO PAPERS. OUR INITIAL ASSESSMENT IS THAT IT WILL DO NOTHING TO ENHANCE THEIR INDEPENDENCE. THERE ARE NO REGULATORY IMPEDIMENTS TO THE SALE.

PATTEN

YYYY

ΜΑΙΝ

73

.HK COMMERCIAL GENERAL

DISTRIBUTION

87

HKD

PUSD

ECONOMIC ADVISERS

ERD

FED

JOINT DIRECTORATE

LEGAL ADVISERS//MS BROOKS

.AND MS BARRETT

NEWS D

PLANNERS

RAD

PS

PS/MR GOODLAD

PS/PUS

MR CROWE

SIR J COLES

MR HUM

MR MASEFIELD

MR BONE

MR MINGAY

PAGE

1

CONFIDENTIAL