TNAG-2109-FCO40-3008-Outer-Space-Act-1986-extension-to-Hong-Kong-1990 — Page 211

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BNSC

HKC031/9

REG

3 APK 1990

Ms S Wong

Hong Kong

Economic Services Dept

Fax to 852 868 4679

DESK C

INDEX

30 March 1990

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Dear Ms Way,

ASIASAT LICENCE.

Thank you for your letter of 26 March.

You will have seen Telno 470 from Peking. The considerably revised exchange proposed by the PRC is acceptable to Legal Advisors, FCO and BNSC - a response to Peking will be despatched today. The escalation of what we hoped would be a simple exchange of notes to that of a formal international Agreement is regrettable as notification to Parliament, Registration with the United Nations etc will now be required. However this will not delay the issue of the licence.

Regarding the effect this has on the insurance position, Willis Faber & Dumas, on behalf of Asiasat (whilst the situation was unresolved with the PRC) decided to obtain a policy from "intentional ignition" with a reference excluding any liabilities accepted by CGWIC under the Launch Services Agreement. Given the PRC response, a policy from the moment of separation would now be acceptable and Willis, Faber & Dumas have been informed of our view, although it may be too late to make such a change. The current Asiasat proposal does however allow for premium reduction before finally placing the policy and the it is hoped the agreement reached with the PRC can be reflected here. We hope to agree the final insurance arrangements with Willis Faber & Dumas within the next day or two. Once finalised, a copy will be made available to Mr Au, during his visit. (The addition of Mr Wilson to the visit is noted and the message passed to Mrs Darvell and Ms Major).

The procedures for extending the Act to Hong Kong are now complete and I attach a copy of the Statutory Instrument which came into force on 14 March 1990. The S.I. number can now be inserted in the Note prefacing the Licence and in the definition contained in Condition 13. Also you will note the need to adjust the above to reflect the slight title amendment by adding "1986".

Turning to the detail of the licence, we could accept deletion of the reference to the Secretary of State in Condition 8.1 (insurance) if it were acceptable to you that full, early, consultation would take place and that no insurance proposals would be accepted without the approval of the BNSC.

BRITISH NATIONAL SPACE CENTRE Millbank Tower Millbank London SW1P 4QU Telex 8811074~ Ansaback DTHQG Fax 01-8215387

Telephone (Direct Dialling) 01-211

(Switchboard) 01-211 3000

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