HKC 031/9

FECER

CONFIDENTIAL

NREGISTRY

21. FED 1990

EGISTRY for the tel issued

Action Taken

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG-

TELNO 333

OF 12140OZ FEBRUARY 90

fa RM14/2

AND TO PRIORITY PEKING, UKREP JLG HONG KONG

113

Mr Norther

17

134150 MDHOAN 2956

JEND

NH 13/2

F

YOUR TELNO 468: OUTER SPACE ACT 1986

WE WERE GRATEFUL FOR TUR WHICH HAS CLARIFIED SOME IMPORTANT POINTS.

1.

2. WE AGREE WITH PARAS 1-3 OF TUR, THAT THERE IS NO NEED TO CONSULT THE CHINESE.

3.

PARA 4 OF TUR: WE DO HAVE AN INTEREST IN SEEING THIS BILL IN DRAFT AS IT IS INTENDED TO IMPLEMENT THE UK'S INTERNATIONAL OBLIGATIONS. OUR LEGAL ADVISERS NEED TO ASSURE THEMSELVES THAT IT DOES so. THE SAME WOULD APPLY TO ANY OTHER BILL IMPLEMENTING INTERNATIONAL OBLIGATIONS.

4. WE HAD A USEFUL MEETING ON 9 FEBRUARY WITH TONY WONG AND BNSC TO DISCUSS THE BEST WAY TO GET THE NECESSARY LEGAL FRAMEWORK IN PLACE BY THE LAUNCH DATE (13-20 APRIL). IT WAS AGREED THAT THE BEST LONG TERM SOLUTION WOULD BE TO INTRODUCE LOCAL LEGISLATION (AND YOU SHOULD THEREFORE CONTINUE YOUR WORK ON THIS). BUT WE NEED A TEMPORARY SOLUTION TO COVER THE IMMEDIATE REQUIREMENTS. WE CONSIDERED TWO MAIN OPTIONS:

A) THE POSSIBILITY OF A CONTRACTUAL ARRANGEMENT (PARA 5 OF TUR).

B) EXTENDING THE ACT UNDER SECTION 2(3) TO THE ASIASAT CONSORTIUM (UNLIKE THE EXTENSION OF THE ACT TO HONG KONG UNDER SECTION 15(6), THIS WOULD NOT/NOT NECESSITATE LATER CONSULTATION WITH THE CHINESE ABOUT LOCALISATION OF THE UK ORDER IN COUNCIL).

5. IF WE ADOPTED OPTION (A), WE WOULD REQUIRE THE TERMS AND CONDITIONS OF THE CONTRACT TO REFLECT CLOSELY THE LICENCES WE ISSUE UNDER THE OUTER SPACE ACT. GRATEFUL IF YOU COULD INVESTIGATE URGENTLY WITH YOUR LEGAL ADVISERS WHETHER THE CONTRACTUAL OPTION IS FEASIBLE, IN PARTICULAR WHETHER THIS COULD BE HANDLED AS A QUOTE CONTRACT UNDER SEAL UNQUOTE (IDENTIFICATION OF QUOTE CONSIDERATION UNQUOTE IN A CONTRACTUAL ARRANGEMENT SEEMS TO US TO PRESENT DIFFICULTIES, BUT UNDER ENGLISH LAW WE WOULD AVOID THESE BY MEANS OF A QUOTE CONTRACT UNDER SEAL UNQUOTE. IF THIS POSSIBLE UNDER HONG KONG LAW?).

6. IF OPTION (B) WAS SELECTED, BNSC WOULD BE REQUIRED TO HANDLE

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CONFIDENTIAL

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