transferred to the Governor.

Discussions will need to take place

in due course with the Chinese over the localisation of the

legislation and Hong Kong hope to be able to retain control and operation of space activities after 1997. They considered that their case would be strengthened if they could demonstrate that the

Governor has always been in charge of regulating activities under

the Act as it applies to Hong Kong. BNSC are (reluctantly) prepared

to agree that the Governor should be the licensing authority under

the Act but have insisted that they should be responsible for

vetting the licence for ASIASAT. Hong Kong have agreed to this. They have also agreed that BNSC should discuss subsequent licensing machinery with Hong Kong with a view to ensuring that the licensing arrangements in Hong Kong will reflect the standards which BNSC apply in the UK.

6.

Given the urgency (the ASIASAT launch is now scheduled for

7 April) it is necessary for the Order in Council to enter into

force on the day it is made (14 March). The Order in Council is not subject to any parliamentary procedure.

IMLAAG

A D Watts

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