-Caveat Lector-

http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3
DU5E08RC&live=true&useoverridetemplate=ZZZ99ZVV70C&tagid
=FTDO9DHMZJC


China offers access deal to News Corp and AOL
By James Kynge and Robert Thomson in Beijing
Published: September 4 2001 18:42GMT |    Last Updated:
September 4 2001 23:29GMT

China is set to allow News Corporation and AOL Time Warner
access to its domestic television audiences in return for their
agreeing to distribute a Chinese government-sponsored channel in
the US.
International broadcasters have fought for more than two decades
to gain access to the Chinese market. Approval would be a
particular triumph for Rupert Murdoch, chief executive of News
Corp.
Xu Guangchun, the Chinese minister responsible for radio, film and
television, said that it was his intention to allow both companies
access to cable viewers in southern China. "We should say that
[broadcasting by News Corp and AOL Time Warner] in a restricted
area in Guangdong province would be fine," Mr Xu said.
He said the only outstanding issue was whether News Corp and
AOL Time Warner would ensure that a China Central Television
channel would be widely available in the US.
It is understood negotiations are far advanced for a general
entertainment channel from News Corp's Star TV network to be
carried in Guangdong, China's most prosperous province, which
neighbours Hong Kong. Permission to broadcast in China will be
particularly sweet for Mr Murdoch, who has spent the past eight
years repairing a reputation damaged by his 1993 statement that
satellite TV represents "an unambiguous threat to totalitarian
regimes".
He dropped the BBC from the Star network in 1994 after a series of
unflattering documentaries on China's politics and social problems
invoked the government's wrath. Earlier this year, James Murdoch,
his younger son and head of operations for News Corp in Asia,
pleased the Chinese authorities with strong criticism of the
outlawed mystic movement, Falun Gong.
Foreign companies have been banned from directly broadcasting
into China, apart from in some tourist hotels and foreign residential
compounds.
China's intention to allow News Corp and AOL Time Warner
access to the domestic television market represents an
unprecedented liberalisation in one of its most closed industries.
AOL Time Warner said: "We've been in positive and constructive
discussions with the Chinese government to get increased access
for China Entertainment Television in China."


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          _Once Around the Sun_ [1951], "December 11"

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