DRAFT
CONFIDENTIAL
Immediate Hong Kong
FM:
FCO
TO:
TELNO:
OF
February 90
INFO IMMEDIATE UKREP JLG HONG KONG, PEKING
YOUR TELNO 468 : OUTER SPACE ACT 1986
4.
Thank you for your response on the proposed local Hong Kong legislation and the proposed licencing regime. We have noted
this.
5. We discussed the position with Mr Wong and considered two options. Firstly, the possibility you mentioned of a contractural arrangement, assuming this is feasible. Secondly, the possibility of extending the Act under section 2(3) to the ASIASAT consortium. There are advantages and disadvantages for both options and we are considering these urgently.
If we adopted the first option, we would require the terms and conditions of the contract to reflect closely the licences we issue under the Outer Space Act.
If option two was selected, BNSC would be required to handle the application and issue the licence from the UK. To give effect to this option we would need to place an Order in Council by the beginning of March. Therefore please investigate as a matter of urgency with your legal advisors whether the contractual option is in fact feasible; in particular whether this could be handled as a 'contract under seal'. (Identification of "consideration" in a contractual arrangement seems to us to present difficulties, but under English law we could avoid these by means of 'a contract under seal'. Is this possible under Hong Kong law?).
6.
Since ASIASAT is procuring the launch, UK is regarded as a joint launching state under Article V of the 1972 Liability Convention. Therefore HMG has to accept a share of the obligations during the launching phase. Hence our close interest in the launch services contract and associated insurance arrangements.
CM6ABF