On Condition 5.1.2, having sought further legal advice, we consider this should remain as drafted. Given the international nature of the reference, it is hoped this will not present major presentational problems with the PRC.

It would appear we are getting close to finalising all the outstanding issues and should be in a position to confirm to you early next week that the licence may be issued. Have you decided how issuing the licence will be undertaken? Also, have you had any significant comments from Asiasat on the draft licence?

Yours sincerely

She Melv Mchu

John Milne

сс

Mr Pryor Mr Inglis

Mr Nicholas

Mrs Darvell, Sols

Mr Northern, SEND

Ms Major, HKD

Mr Chamberlain, FCO ZF 258/015

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