Draft tel. to dow
with BUSC/ESED
CONFIDENTIAL
ZCZC
CONFIDENTIAL
16/12/72 fo
192/1
1
pa Asicsunt (11)
ра
PRIORITY
FM FCO
TO PRIORITY HONG KONG
TELNO
OF 161657Z DEC 92
INFO INFO ROUTINE PEKING, UKREP JLG HONG KONG
YOUR TELNO 2524:
3
PROPOSAL FOR THE ESTABLISHMENT OF AN AUTONOMOUS
HONG KONG SATELLITE LICENSING REGIME
1.
THANK YOU FOR TUR AND FOR YOUR FURTHER THOUGHTS ON POSSIBLE
LICENSING ARRANGEMENTS FOR SATELLITES IN HONG KONG BEFORE 1997.
2. YOU PROPOSE THAT AN AUTONOMOUS HONG KONG SATELLITE LICENSING
AUTHORITY BE ESTABLISHED WHICH WOULD EMPLOY ITS OWN CONSULTANTS
TO ENSURE THAT SATELLITE OPERATORS (AND HENCE HKG AND HMG) WERE
FULLY INSURED AGAINST LIABILITIES ARISING FROM THEIR SATELLITE
OPERATIONS. OUR INITIAL REACTION TO THIS PROPOSAL IS FAVOURABLE.
EVIDENTLY, HOWEVER, WE WOULD NEED TO BE FULLY SATISFIED WITH THE
PROPOSED INDEMNITY ARRANGEMENT AND WITH THE PROPOSED LICENSING
REGIME BEFORE ANY SUCH ARRANGEMENT COULD BE PUT IN PLACE.
3. WE AGREE THAT GREATER AUTONOMY FOR HONG KONG IN THIS FIELD IS
A WORTHWHILE OBJECTIVE: IT WILL ENABLE HONG KONG TO GAIN
EXPERIENCE AND TO ESTABLISH ITS OWN SOURCES OF EXPERTISE BEFORE
THE LONGER ESTABLISHED THE AUTONOMOUS LICENSING REGIME,
1997.
HKD
J MARSHALL
THE
270 3287
CONFIDENTIAL
PRIORITY
THE MORE LIKELY IT WILL BE THAT THE CHINESE WILL FOLLOW GENERAL
PRECEDENT AND ACCEPT THE CONTINUATION OF THIS REGIME AFTER THE
HANDOVER. BUT OUR IMMEDIATE CONCERN MUST BE THAT A HONG KONG
LICENSING REGIME SHOULD BE CONSTRUCTED ON A SOUND LEGAL AND
ADMINISTRATIVE BASIS.
4. THE PRINCIPAL CONCERN OF THE BNSC IS TO ENSURE THAT ALL
SATELLITE OPERATIONS BY COMPANIES INCORPORATED IN THE UK AND ITS
DEPENDENT TERRITORIES ARE FULLY INSURED SO AS TO PROTECT HMG
AGAINST LIABILITIES ARISING FROM THOSE OPERATIONS. THE BNSC WILL
THEREFORE NEED TO BE SATISFIED WITH THE LICENSING AUTHORITY AND
WITH THE INDEMNITY ARRANGEMENT. FIRSTLY, THE LICENSING REGIME
WILL NEED TO HAVE ACCESS TO CONSULTANTS WITH THE RIGHT LEVELS OF
LEGAL, TECHNICAL AND INSURANCE EXPERTISE TO CHECK THAT SATELLITE
OPERATORS ARE PROPERLY INSURED BEFORE LICENSES ARE ISSUED. THE
BNSC WILL NOT WANT TO VET INDIVIDUAL LICENSE APPLICATIONS BUT
WILL WANT TO BE CONFIDENT FROM THE OUTSET IN THE TECHNICAL
COMPETENCE OF THE LICENSING REGIME. SECONDLY, THE NEGOTIATED
INDEMNITY ARRANGEMENT WILL HAVE TO BE COMPREHENSIVE AND ACCEPTED
BY FCO AND BNSC LEGAL ADVISERS AS A SOUND LEGAL BASIS FOR AN
AUTONOMOUS LICENSING REGIME IN HONG KONG.
5. THE NEXT LICENCE TO BE ISSUED IN HONG KONG WILL BE FOR EPSTAR
ONE, SCHEDULED FOR LAUNCH IN MID 1994. WE AGREE THAT IT WOULD BE
HELPFUL IF NEW ARRANGEMENTS COULD BE IN PLACE BY THEN. HOWEVER
THIS CANNOT BE GUARANTEED DUE TO THE LEGAL PROBLEMS WHICH
COULD ARISE IF IT IS DECIDED TO GO AHEAD.
WE AND THE BNSC ARE CONSULTING OUR LEGAL ADVISERS ABOUT THIS
PROPOSAL. IT WOULD BE HELPFUL IF YOU COULD NOW PRODUCE A FORMAL
PROPOSAL FOR OUR DETAILED CONSIDERATION.
6.
HURD
YYYY