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HKB 020114
(76)
114436
MDHIAN 2877
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FM WASHINGTON
TO DESKBY 12090OZ FCO
TELNO 1857
OF 112315Z JULY 89
INFO DESKBY 12090OZ DTI
INFO IMMEDIATE HONG KONG, PEKING
Enlu+TA
14/
DTI TELNO OTTER 69: CABLE AND WIRELESS INTEREST IN ASIASAT
1. OUR CONTACTS AT STATE HAVE CONFIRMED THAT ASIASAT ARE STILL PRESSING FOR A DECISION BY 14 JULY BUT SAY THAT OPINIONS ARE DIVIDED ABOUT WHETHER A LICENCE SHOULD
BE ISSUED. SOME WITHIN STATE ARE ARGUING THAT THE RATIONALE FOR GRANTING AN EXEMPTION TO BOEING COUR TELNO 1840) APPLIES EQUALLY TO THE TWO SATELLITE LAUNCHES.
OTHERS ARE CONCERNED ABOUT A POSSIBLE ADVERSE REACTION FROM CONGRESS, WHERE THERE IS CONSIDERABLE OPPOSITION TO THE LAUNCHES (AS REFLECTED IN THE PROVISION IN THE
AMENDMENT TO THE FOREIGN AID BILL - OUR TELNO 1787 - WHICH
WOULD INCLUDE BOTH THE ASIASAT AND AUSSAT LAUNCHES IN A CONGRESSIONALLY MANDATED BAN ON MUNITIONS LICENSING). THE
FINAL LICENSING DECISION WOULD BE TAKEN AT A SENIOR LEVEL WITHIN STATE (SEE BELOW).
2. THE COUNSELLOR FOR SCIENCE AND TECHNOLOGY AT THE
CHINESE EMBASSY CALLED ON COUNSELLOR (SCIENCE AND TECHNOLOGY) YESTERDAY TO SEEK OUR SUPPORT FOR THE ASIASAT LAUNCH. THE CHINESE HAVE ALSO BEEN IN TOUCH WITH THE AUSTRALIANS ABOUT AUSSAT AND WITH WENDT AND OTHERS AT STATE ABOUT BOTH PROJECTS.
WE UNDERSTAND THAT THE CHIEF EXECUTIVE OF ASIASAT IS DUE TO
ARRIVE IN WASHINGTON TODAY TO LOBBY ON BEHALF OF THE CONSORTIUM. HUGHES ARE KEEPING IN CLOSE TOUCH WITH STATE BUT, UNLIKE BOEING, HAVE NOT SO FAR MOUNTED AN EFFECTIVE LOBBYING CAMPAIGN ON THE HILL.
3. AGAINST THIS BACKGROUND, WE THINK THAT AN INTERVENTION BY HMG ON BEHALF OF CABLE AND WIRELESS WOULD CERTAINLY DO NO HARM. OUR CONTACTS IN THE OFFICE OF COCOM AFFAIRS AT STATE (WHO ARE IN FAVOUR OF THE PROJECT BEING LICENSED) HAVE TOLD US PRIVATELY THAT THEY WOULD IN FACT WELCOME SUCH AN APPROACH AND HAVE SUGGESTED THAT IT SHOULD BE MADE TO EAGLEBURGER (BOTH BAKER AND KIMMITT ARE AWAY) AS SOON AS POSSIBLE (A DECISION MEMORANDUM WAS DESPATCHED TO KIMMITT TODAY AND COULD BE BACK WITH EAGLEBURGER AS SOON AS TOMORROW, 12 JULY). IF YOU WISH US TO INTERVENE ON THIS ISSUE, I RECOMMEND THAT I SHOULD
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