CONFIDENTAL

7

territory the earth station is located. The second part

of the Article, which allows applications to be made by a

duly authorised telecommunications entity, is not relevant

in the case of Hong Kong because it relates only to earth

stations located in territory not under the jurisdiction

of a Party. Similarly, under the first part of Article

15(a) of the Operating Agreement, any application for

allotment of INTELSAT space segment capacity must be

submitted to INTELSAT by a Signatory. This means that

applications to INTELSAT in respect of earth stations

licensed by the Hong Kong telecommunications

administration must be submitted by BT. The British side

understands that BT has accordingly submitted applications

to INTELSAT for approval of each of the earth stations

operated by the Cable & Wireless Group in Hong Kong, that

such approval has been given, and that accordingly the

Group has used a part of the total space segment allotted

to BT.

10.

There is close cooperation between the UK

Signatory (BT) and the Cable & Wireless Group on all

matters affecting Hong Kong's interests. In this way,

whenever the Signatory is required to act on behalf of

Hong Kong, the latter's interests are taken fully into

account.

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