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Fanny Wong

CHINA yesterday endorsed the launch of Hongkong's long-awaited cable television network in a move seen as a ''pleasant surprise'' on the eve of Sino-British talks on the territory's political future.

  The pay-TV licence, which gives successful bidder Wharf Cable a 12-year franchise, was one of a number of contracts straddling 1997 that China had insisted needed its backing.

  Also given the go-ahead by the Chinese team in the Joint Liaison Group (JLG) yesterday were the scheme of control agreement for Hongkong Electric and the New Territories West landfill contract, which is due to be awarded in the next few days.

  The warm message on the endorsement of the projects was delivered by JLG team leader Mr Luo Jiahuan to his British counterpart, Mr Alan Paul, at their weekly meeting.

  Having already spent $600 million on the project, Wharf Cable is scheduled to launch its trial run in Sha Tin and Tsuen Wan in July and the territory-wide service is planned to be in full operation in October.

  The company expects two million homes to have pay-TV within two years.

  An official in the Chinese JLG office said China had been concerned about Hongkong people's livelihood and the territory's economic developments all along.

  ''Regardless of what issues, as long as they are conducive to Hongkong's long-term stability and prosperity as well as the smooth transfer of sovereignty in 1997, the Chinese side will take a positive attitude in resolving the problems,'' the official said in a China News Service report.

  The endorsements follow on from the first major indication of conciliation earlier this month when the Chinese side of the Sino-British Land Commission approved the 1993-94 land disposal programme, even though the controversial Container Terminal 9 (CT9)project was separated from it for further consideration.

  Beijing's willingness to at least reach some deals with Britain is a major departure from the hostile attitude Chinese officials had adopted after the Governor, Mr Chris Patten, unveiled his constitutional reform package last October.

  Experts from the two sides of the JLG met separately yesterday to discuss post-1997 extradition arrangements and mutual legal assistance for criminal affairs.

  The first expert meeting since December was reported to have ended with some progress made.

  Commenting on yesterday's agreements, a vice-director of the local branch of the New China News Agency (NCNA), Mr Zhang Junsheng, said China would adopt a reasonable attitude towards anything conducive to Hongkong's economic prosperity and a smooth transition.

  The British Foreign Office's spokesman in Hongkong, Mr Chris Osborne, described the endorsement of the cable TV licence, Hongkong Electric arrangements and the urgently needed landfill project as a ''pleasant surprise''.

  ''Things are gradually easing off,'' said Mr Osborne.

  However, he said there was still no date for holding the next JLG plenary meeting.

  Wharf Cable's deputy chairman and managing director, Mr Stephen Ng Tin-hoi, said he was pleased a deal had been reached.

  ''The company will discuss the details for the award of licence with the Recreation and Culture Branch,'' he said.

  ''In the meantime, implementation activities of Wharf Cable continue.

  ''Our target is to launch in October this year to fulfil our promise to the people of Hongkong.''   A Hongkong Electric spokesman also welcomed the deal, adding that the Government had agreed in principle to extend the scheme of control agreement by 15 years.

  The renewed scheme of control will start on January 1 and run until 2009.

 The existing scheme guarantees Hongkong Electric a return of a fixed percentage of the value of its average nett fixed assets.

 It is understood that before yesterday's meeting, the British side had received no concrete signal from the Chinese on these measures.

  Information briefs and presentations on the pay-TV and Hongkong Electric projects are understood to have been given to the Chinese team last year.

  Documents relating to the landfill contract were passed on to it early this year. The landfill is one of three new strategic sites to be built over the next few years to replace ones currently in use at Tseung Kwan O, Shuen Wan and Pillar Point.

  The site has a capacity of 58 million cubic metres and is expected to operate for about 25 years. The Swire group is tipped to be the contractor for the project.

  Sources said the three projects were the most urgent ones being delayed.

  Equally urgent is the CT9 project, which was not touched on at yesterday's meeting.

  The Chinese JLG official reiterated that China's stance on contracts, leases and agreements beyond 1997 was clear.

  Under the Sino-British Joint Declaration, Britain's administrative power over Hongkong would terminate on June 30, 1997, he said.

  Except for land leases whose validity was already stipulated under Annex 3 of the Joint Declaration, all other contracts, leases and agreements signed and ratified by the Hongkong administration will only be valid until June 30, 1997.

  ''To ensure Hongkong's smooth transition, the Chinese side has said many times that all contracts, leases and agreements straddling 1997 should be discussed in the Joint Liaison Group,'' the official said.

        Noting that time was running out and Hongkong was moving closer to 1997, he said the Chinese side hoped the British would adopt a co-operative attitude so the two would work together to solve the complex issues that remain.



Surprise as China endorses cable TV