TNAG-1926-FCO40-2742-Future-of-Hong-Kong-Sino-British-Joint-Liaison-Group-sub-gro-1989 — Page 23

12.

The Cable & Wireless Group communicates directly

with INTELSAT in respect of all matters connected with

Hong Kong's use of the INTELSAT space segment through

earth stations other than those reserved for the Parties

or Signatories under the INTELSAT Agreement and Operating

Agreement. Examples of such matters include daily

operational activities of Cable & Wireless earth stations

in Hong Kong, forecasts of future requirements for space

segment capacity, and the payment of utilization charges

13.

The users of the INTELSAT space segment pay

utilization charges (Operating Agreement, Article 4(c)).

Article 8(a) of the Operating Agreement provides that the

Board of Governors of INTELSAT shall establish charges for

the utilization of the INTELSAT space segment which are to

cover the operating, maintenance, administrative costs and

other expenses of INTELSAT. In the case of earth stations

in Hong Kong, the appropriate utilization charges are paid

by the Cable and Wireless Group directly to INTELSAT. As

of March 1989, the Group used 3,969 INTELSAT voice grade

circuits to and from Hong Kong on a full-time basis.

Additional channels for television are used on

required" basis. Although the applications for the

approval of earth stations to utilize the INTELSAT space

segment and

and for the allotment of INTELSAT space segment

capacity must formally be submitted to INTELSAT by the

Signatory (Article 14 and Article 15 of the Operating

Agreement), in practice the Cable & Wireless Group deals

an

"as