the ASIASAT launch. Mr Wong tabled the launch services agreement in which he understood China had agreed to cover all liabilities during the launch phase, copies were made available. Mr_Inglis expressed doubt whether the launch services agreement would give HMG adequate protection. HMG may well ask ASIASAT to take out adequate insurance during the launch phase, but the exact wording needed to be studied.
Mr_Wong said ASIASAT had asked for an indication of what level of insurance cover would be required under the Outer Space Act 1986 and asked BNSC to specify a figure. Mr Inglis explained that the legislation did not specify a ceiling and that it was up to the applicant to propose a level of insurance cover which would then be assessed. Mr_Inglis added that under section 10 of the Act, ASIASAT would have to indemnify HMG against any claims. BNSC would have to satisfy themselves that ASIASAT had adequate insurance arrangements to cover third party liability.
Mr Chamberlain said that extension under section 2 (3) would not affect Hong Kong law. Such a course of action could be interpreted as merely amending UK law. Miss Major said that this meant the Chinese would not have to be consulted before the later localisation process.
Mr Chamberlain commented that there may be problems in Hong Kong if the Act were extended under section 2 (3). Mrs Darvell said that although one could take proceedings in British courts against an offence commited outside the UK (see section 12 (4)), criminal juristiction does not extend to Hong Kong. The only possible means of securing attendance before a British court was through extradition but an offence under section 12 (1) was not an extraditable offence.
Mr Inglis turned to the original idea of extending the Outer Space Act under section 15 (6) because of the problems encountered with the other options. Mr Chamberlain explained that extending the Act under section 15 (6) would be technically more complicated and would require advice from PMG Hong Kong on adjusting the provisions of the Act.
Mr Chamberlain added that in his view an extension under section 2 (3) in conjunction with a contractual arrangement between Hong Kong and ASIASAT appeared to be the best option. Mrs Darvell said that this dual approach would be acceptable in principle, provided ASIASAT applied to BNSC for a licence. However, identification of "consideration" in a contractual arrangement could present difficulties.
Mrs Darvell explained that under English law this could be avoided by a "contract under seal". The Hong Kong legal advisers should therefore check whether a "contract under seal" was possible under Hong Kong law.
Mr Inglis asked whether it was possible to enforce the proposed extension of section 2 (3) by licensing UK Cable and Wireless. Darvell replied that this would be possible if Cable and Wireless were
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