Thursday July 11, 8:45 PM

BEIJING, July 11 (Reuters) - China said on Thursday it was in talks with the British Broadcasting Corp over its axed satellite signal, adding that restoring transmission would depend on the media company's "reaction".

China recently blacked out BBC World Service Television's programmes after it showed a demonstration in Hong Kong against Beijing's crackdown on the banned Falun Gong spiritual group on the fifth anniversary of Hong Kong's return to Chinese rule.

Beijing's sensitivity over Falun Gong was highlighted this week in a propaganda campaign that blamed the group for a series of [overriding] of a Chinese satellite signal last month that interrupted nationwide broadcasts.

The group said in a statement from New York on Wednesday it did not know who had hacked into the satellite signals.

Foreign Ministry spokesman Liu Jianchao said on Thursday the BBC had "violated an agreement" with China International TV Corp (CITV), but gave no details of that agreement.

State-owned CITV monopolises distribution of foreign channels, most of which may only be shown in luxury hotels and housing approved for foreigners in China, where the media are closely guarded as a crucial means of spreading propaganda.

Liu said the two sides had already held negotiations on the matter and would continue to do so.

"As for when the signals would resume, that will depend on the BBC's reaction to this matter," he said.

China switched off the BBC World transmission from a state-owned satellite, but the channel is still beamed into China via three satellites owned by PanAmSat Corp .

Last week a BBC spokeswoman said that, although no official reason had been given, "we understand there was dissatisfaction with the content of a news bulletin".

An industry source said last week that China is "not in the habit of turning (channels) on and off for a few days".

BBC World was allowed to start broadcasting in China in 2000, six years after BBC programmes had been pulled off the Star TV channel, owned by Rupert Murdoch's News Corp , when the content ruffled Beijing.

In 1999, China barred access to U.S. satellite news channel CNN for some Beijing residents ahead of the 10th anniversary of the massacre of student-led protesters around Tiananmen Square on June 4.

http://sg.news.yahoo.com/reuters/npek146615.html

Posting date: 7/12/2002
Original article date: 7/11/2002
Category: News & Media Reports

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