TNAG-1926-FCO40-2742-Future-of-Hong-Kong-Sino-British-Joint-Liaison-Group-sub-gro-1989 — Page 5

AMENDMENTS TO THE OPERATING AGREEMENT ON THE INTERNATIONAL MARITIME SATELLITE ORGANIZATION (INMARSAT)

ARTICLE V Investment Shares

Article V, paragraph (2) is replaced by the following text:

(2) For the purpose of determining investment shares, utilization in both directions shall be divided into two equal parts, a mobile earth station part and a land part. The part associated with the ship or aircraft or mobile earth station on land where the traffic originates or terminates shall be attributed to the Signatory of the Party under whose authority the ship or aircraft or mobile earth station on land is operating. The part associated with the land territory where the traffic originates or terminates shall be attributed to the Signatory of the Party in whose territory the traffic originates or terminates. However, where, for any Signatory, the ratio of the mobile earth station parts to the land parts exceeds 20:1, that Signatory shall, upon application to the Council, be attributed a utilization equivalent to twice the land part or an investment share of 0.1 per cent, whichever is higher. Structures operating in the marine environment, for which access to the INMARSAT space segment has been permitted by the Council, shall be considered as ships for the purpose of this paragraph.

ARTICLE XIV

Earth Station Approval

Article XIV, paragraph (2) is replaced by the following text:

(2) Any application for such approval shall be submitted to the Organization by the Signatory of the Party in whose territory the land earth station is or will be located, or by the Party or the Signatory of the Party under whose authority the mobile earth station or the earth station on a structure operating in the marine environment is licensed or, with respect to land earth stations and mobile earth stations located in a territory or on a ship or an aircraft or an earth station on a structure operating in the marine environment not under the jurisdiction of a Party, by an authorized telecommunications entity.