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the controllers and operators of the satellite. Mr. Wong referred to paragraph 5 of telegram 468 which explained ASIASAT will control and operate the satellite from Hong Kong. Mr Chamberlain asked whether any of the Directors of the consortium were from Cable and Wireless or resident in the UK. Mrs Darvell said that one could try and pursue an individual Director resident in the UK, but proceedings could only be taken under section 12 (3) if it could be proved that the director in question was responsible for the offence.

Mr Inglis asked whether ASIASAT could be forced to apply for a licence assuming extention under section 2 (3). Mr Chamberlain replied that there would be no means of doing so in Hong Kong. However, HMG would certainly be able to licence ASIASAT under the UK Act.

Mr Inglis asked how the Act could be enforced if ASIASAT were to breach the conditions of the licence. Mr Chamberlain said that while enforcement in Hong Kong was not possible there were two safeguards. Firstly, BNSC would have checked that there were adequate insurance arrangements covering third-party liability, satisfactory technical facilities, etc., as part of the usual licensing procedure. local legislation was planned to be in place a few months after the launch date.

Secondly,

Mr Inglis asked the position regarding licensing and enforcement if the Act was extended under section 15 (6), because it appeared to be the optimum option for safeguarding the UK's international obligations. Mr Chamberlain said that action could be taken against any breach of the licence conditions by ASIASAT under Hong Kong law.

Mr Wong said that the Hong Kong administration was inspecting ASIASAT's TT&C facilities under the ITU Convention and the radio regulations which were annexed to it. Mr Close explained that inspection of TT&C facilities was an important element of the normal licensing procedure under the Outer Space Act. BNSC agreed to advise Hong Kong on the requirements our expert

experts would expect on TT&C arrangements.

Mr Inglis reminded Mr Wong that he had agreed to hand over information

Mr Wong relating to paragraph 7 (E), (F), (J) and (K) of telegram 113. passed on all relevant information and said he assumed the UK would want to name HMG as a named insured. Mr Inglis said this would probably be the case. Mr Wong added that further information on the financial structure of the company would be sought as a matter of urgency.

Mr Inglis referred to telegram 468 para 7 (b) regarding the approval/or non-approval by COCOM of the security plan prepared by the US authorities responsible for strategic exports. The proposed export to China of ASIASAT 1 was subject to COCOM's approval of this sercurity control plan. Miss Handcock said the FCO would advise on the COCOM position.

It was agreed that the following actions would be taken:

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