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Memorandum of Agreement

on Liability for Satellite Launches

Between the Government of the United States of America and the Government of the People's Republic of China

The Government of the United States of America and the Government of the People's Republic of China (hereinafter the "Parties"),

Noting the intention of the People's Republic of China to proceed promptly to become a party to the Convention on International Liability for Damage Caused by Space Objects, which entered into force on September 1, 1972 (hereinafter the "Liability Convention"),

Have agreed as follows:

Article 1

This Memorandum of Agreement applies to the AUSSAT satellites and the ASIASAT satellite and their launch by the People's Republic of China.

Article 2

Subject to Article 4 below, the Parties agree that, as between them, the Government of the People's Republic of China assumes and shall compensate the Government of the United States of America for any and all amounts for which the Government of the United States of America may be liable under the Liability Convention; the Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, which entered into force on October 10, 1967; or any other applicable international law.

Article 3

In the event that a claim for compensation for damage within the scope of Article 2 above is brought against the Government of the United States of America, the Government of the United States of America, as soon as practicable after receiving notice of such claim, shall notify the Government of the People's Republic of China thereof.

Article 4

1.

The Government of the United States of America shall not make any settlement with any such claimant without full consultation with the Government of the People's Republic of China.

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