TNAG-2109-FCO40-3008-Outer-Space-Act-1986-extension-to-Hong-Kong-1990 — Page 382

CONFIDENTIAL

RECEIVED IN REGISTRY

ZI FEB 1990

Rar.

144113 MDHOAN 3190

DFSK OFFICER

*EGISTRY

INDEX

FA

Action Taken

Rephy in fe fm1412

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 350

OF 14150OZ FEBRUARY 90

INFO PRIORITY PEKING, UKREP JLG HONG KONG

6

MY TELNO 333: OUTER SPACE ACT 1986

1.

0

AFTER CONSULTING FURTHER WITH THEIR LEGAL ADVISERS, BNSC HAVE NOW DECIDED THAT THE OPTION OF EXTENSION UNDER SECTION 2(3) WILL NOT/NOT GIVE HMG SUFFICIENT CONTROL OVER THE SATELLITE LAUNCH FOR THE PURPOSES OF FULFILLING OUR INTERNATIONAL OBLIGATIONS. ALTHOUGH EXTENSION UNDER 2(3) CAN EXTEND THE ACT TO CERTAIN COMPANIES IN HONG KONG, THERE WOULD BE NO WAY OF ENFORCING THE ACT IN HONG KONG UNLESS THE REST OF THE ACT IS ALSO APPLIED UNDER SECTION 15(6). BNSC CONSIDER THAT THIS IS A LOOPHOLE WE CANNOT LEAVE OPEN. THEY DO NOT BELIEVE THAT A CONTRACTUAL ARRANGEMENT

WILL HELP.

2.

THE ONLY WAY FORWARD THEREFORE APPEARS TO BE EXTENSION OF THE ACT UNDER BOTH SECTION 15(6) AND/AND SECTION 2(3). WE REALISE THE MAIN DRAWBACK WITH THIS OPTION: THAT WE SHALL LATER HAVE TO CONSULT THE CHINESE ABOUT LOCALISATION OF THE UK ORDER IN COUNCIL. BUT THERE SEEMS TO BE NO OTHER WAY TO ENSURE THAT THE NECESSARY SAFEGUARDS ARE IN PLACE BEFORE THE LAUNCH DATE.

3. EVEN SO, TIMING WILL BE TIGHT. WE SHALL NEED TO SUBMIT AN ORDER IN COUNCIL TO THE PRIVY COUNCIL BY 7/7 MARCH. WE SHALL BE FAXING TO YOU TOMORROW A FIRST DRAFT AND WOULD BE GRATEFUL FOR YOUR COMMENTS ON THE MODIFICATIONS MADE TO TAKE ACCOUNT OF LOCAL CIRCUMSTANCES (EG WHETHER AND HOW A LOCAL REGISTRY SHOULD BE PROVIDED, LICENCING PROCEDURES ETC).

4.

NEEDLESS TO SAY, THE INFORMATION REQUIRED IN PARAGRAPH 5 OF TUR IS NOW NOT/NOT NEEDED. BUT WE SHALL NEED TO PURSUE THE POINTS IN PARAGRAPH 9 OF TUR.

5. AN ADDITIONAL POINT: BNSC HAVE BEEN CONTACTED BY WILLIS, FABER AND DUMAS LTD, WHO SAY THEY ARE THE APPOINTED INSURANCE BROKERS FOR ASIASAT AND WOULD LIKE TO PURSUE DISCUSSIONS ABOUT THE LAUNCH. GRATEFUL IF YOU WOULD CONSIDER WITH ASIASAT WHO SHOULD COMPLETE THE FORMAL LICENCE APPLICATION AND WHO SHOULD BE NOMINATED AS THEIR AGENT FOR DETAILED DISCUSSIONS WITH BNSC.

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CONFIDENTIAL