TNAG-2109-FCO40-3008-Outer-Space-Act-1986-extension-to-Hong-Kong-1990 — Page 341

RESTRICTED

RESTRICTED

FM FCO

TO IMMEDIATE PEKING

TELNO 164

OF 231029Z FEBRUARY 90

HKC 03119

RECEIVE

NARE 15 MAR 1990

INFO ROUTINE HONG KONG, UKREP JLG HONG KONG ER

IND

ATRY

PA

...n Taken

OUTER SPACE ACT 1986: ASIASAT

175103 MDHOAN 3736

38

23/2

1. WE HAVE BEEN COPYING TO YOU CORRESPONDENCE (RESTING WITH

HONG KONG TELNO 665 TO FCO) ABOUT ARRANGEMENTS FOR THE LAUNCH OF THE ASIASAT SATELLITE FROM CHINA IN APRIL. WE NOW NEED TO

CONCLUDE A BILATERAL ARRANGEMENT WITH THE CHINESE WHICH WILL PROTECT OUR POSITION ON THE QUESTION OF LIABILITY UNDER THE UN LIABILITY CONVENTION IF ANY DAMAGE IS CAUSED TO THIRD PARTIES DURING THE LAUNCH PHASE. (BECAUSE ASIASAT IS A HONG KONG

REGISTERED COMPANY THE UK WOULD OTHERWISE SHARE LIABILITY AS A

JOINT LAUNCHER STATE UNDER ARTICLE V OF THE LIABILITY

CONVENTION).

2.

THE PRC SIGNED AN AGREEMENT (MOU) WITH THE US IN 1988 UNDER

WHICH THEY ACCEPTED FULL LIABILITY FOR ANY CLAIMS AGAINST THE US ARISING FROM THE LAUNCHES OF THE AUSSAT AND ASIASAT

SATELLITES. THE CHINA GREAT WALL INDUSTRY CORPORATION HAS

RECENTLY CONFIRMED TO ASIASAT THAT THE CHINESE GOVERNMENT IS READY TO ACCEPT FULL LIABILITY FOR ALL DAMAGE CAUSED TO THIRD PARTIES DURING THE LAUNCH OF ASIASAT.

3. GRATEFUL THEREFORE IF YOU WOULD PROPOSE TO THE MFA THAT WE SHOULD CONCLUDE A BILATERAL ARRANGEMENT SINCE THIS MUST BE IN PLACE BEFORE THE EARLIEST POSSIBLE LAUNCH DATE ON 7 APRIL, THE SIMPLEST ARRANGEMENT MIGHT BE A FORMAL EXCHANGE OF NOTES BETWEEN THE EMBASSY AND THE MFA. MIFT CONTAINS A SUGGESTED DRAFT. PLEASE PUT THIS TO THE MFA AND REPORT REACTIONS.

4.

FOR YOUR OWN INFORMATION THE CHINESE MAY SEEK RECIPROCAL

ASSURANCES FROM US IN RESPONSE ABOUT LIABILITY FOR THE SATELLITE DURING THE PERIOD AFTER SEPARATION. IF SO, WE MAY WELL HAVE TO AGREE: BUT YOU SHOULD MERELY UNDERTAKE TO REFER

ANY REQUEST WITHOUT COMMITMENT.

5. SEE MIFT.

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