A MAJOR review of Hongkong's radio scene begins this week to rewrite the rules and regulations which, according to one broadcaster, ''are by and large obsolete''. A joint meeting between the Secretary for Recreation and Culture Branch (RCB), Mr James So Yiu-cho, and representatives from Metro Broadcast, Commercial Radio and RTHK takes place this Friday. The policy review, which is expected to be completed within three months, could help the Government achieve its aim of making Hongkong a regional leader in the competitive broadcasting arena, according to Metro's general manager, Mr Craig Quick. ''Windows of opportunity open and close very quickly. Australia, America and Canada are all interested in Hongkong as a broadcasting centre,'' he said. ''But unless it becomes easier for Hongkong's broadcasters to attempt to exploit the opportunities, Hongkong will get by-passed. ''This is a very critical time; decisions made now are going to have huge ramifications for radio.'' Radio rules fall under the Telecommunication Ordinance, which was passed in 1962. Part III (A) of the ordinance, which deals with radio broadcasting licensing, was added in 1989. While there has been a series of updates to the legislation, according to Mr Quick, ''it does not reflect the realities of the modern age''. ''Radio has changed so dramatically - there are a lot of restrictions on radio that don't apply today. The codes reflect a time when radio was the only medium. ''It's from a different age, essentially,'' said Mr Quick. Advertising codes, rules on cross-media ownership, reception quality, time restrictions that apply to broadcasting and royalties, are among the main issues the Government and broadcasters think should be addressed. One issue Metro will be raising is advertising restrictions. Mr Quick believes political parties should be allowed to advertise. It is also possible the question of RTHK corporatisation may come up, according to RCB principal assistant secretary (broadcasting), Mr Peter Harrison. RTHK's deputy director of broadcasting, Mr Chu Pui-hing, said the ultimate objective of the review was to make broadcasting a thriving and prosperous medium . For the public broadcaster, reception quality will be one of the main areas of discussion, but Mr Chu did not expect corporatisation to be on the agenda. Mr Quick described the present situation as ''a whole series of small problems, the result of which is a big problem''. Another piece of legislation set to revolutionise the industry is now in the drafting stage - a Broadcasting Ordinance. Broadcasting currently comes under three different ordinances: the Broadcasting Authority Ordinance, the Television Ordinance, recently amended to allow for cable television, and the Telecommunication Ordinance. Described as an omnibus, fully comprehensive Broadcasting Ordinance, the proposed bill will replace the current set-up, which Mr Harrison admitted was messy. ''It's a bit of a hotch-potch, a bit messy; it's not a very tidy arrangement,'' he said. The all-encompassing legislation will involve government departments across the board - the RCB, the Television and Entertainment Licensing Authority, the Attorney-General's Chambers, the Post Office, Finance Branch, Economic Services Branch, Constitutional Affairs Branch and the Broadcasting Authority. Broadcasters themselves will also have a say. Work on the legislation began two years ago and it is hoped a first draft of the bill will be available in about four months and enacted by mid-1994. ''You name it, it will be there in one ordinance - a regulatory regime that will cover all aspects of broadcasting,'' said Mr Harrison.