CONFIDENTIAL

5

investment share, the UK Signatory (BT) is entitled to be

represented on the Board of Governors. The PRC Signatory

is also currently represented on the Board of Governors.

It should be noted that, under

arrangements for

representation at international meetings which were agreed

with BT and the Cable and Wireless Group in 1984, the UK

Government has reserved the right to attend all INTELSAT

Board meetings where questions concerning UK government

policy are at issue.

7.

In accordance with Article V of the Agreement, BT

(the UK Signatory) held 13.71% of the total INTELSAT

investment as of March 1988. In Hong Kong the

Kong the earth

stations using the space segment are operated by the Cable

and Wireless Group. The Cable and Wireless Group

participates in BT's investment share, and therefore their

presence at all INTELSAT fora is essential so that they

may participate in and influence at first hand the

considerations and decisions of the Organisation. That

part of the Cable & Wireless Group's financial interest in

the total INTELSAT investment, which is attributable

is

the Group's activities in respect of earth stations in

Hong Kong, is 2.79% of the total INTELSAT investment.

This means that the utilization of the earth stations in

Hong Kong likewise constitutes 2.79% of all utilization of

the INTELSAT space segment by all Signatories calculated

in accordance with the method provided in Article 6 of the

Operating

monetary terms, the total

Agreement.

In

to

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