TNAG-2550-FCO40-3725-Hong-Kong-Asia-Satellite-Telecommunications-Company-Limited--1992 — Page 3

To:

Mr Inglis BNSC

192/1

RECEIVED IN REGISTRY

4 JAN 1993

From:

Patrick Robinson

DESK OFFICER

BNSC

INDEX

PA

REGISTRY Action Taken

Room 712 DB

276 2393

12)

pa Amant Asia Sat Nilering

Mr Pryor BNSC

Dr Jude BNSC Mr Bailey Sols Mr Jordan Sols Mr Strike TP

Mr Daniels RA1

Mr Marshall FCO HKD - Miss Losty FCO ESED

21 December 1992

HONG KONG SATELLITE LICENSING UNDER THE OUTER SPACE ACT 1986

1.

FCO have been approached by the Hong Kong Government (HKG), who want BNSC to give up its direct involvement in Hong Kong satellite licensing under the OSA 1986, as applied to Hong Kong by the OSA (Hong Kong) Order 1990. BNSC would be left with only a formal role in fulfilling HMG's obligations as signatory to international agreements on space. It seems this would amount, in effect, simply to notification to the UN of objects in outer space under the 1975 Registration Convention. I discussed the matter with representatives of the Hong Kong administration and the Hong Kong Post Office on 14 December. Their proposal is outlined in FCO telno 2524 of 19 October 1992, attached.

2. The precedent for current licensing practice rests on only one licence, for Asiasat 1, which we negotiated in 1990. In essence the 1990 Order substitutes the Governor of Hong Kong for the Secretary of State as the person responsible for satisfying himself about the various requirements of the Act and issuing licences to Hong Kong citizens and companies. BNSC agreed to extending the Act to Hong Kong in this particular manner on the understanding that we would be given the opportunity to vot any licensing procedures established in Hong Kong. In the event, it appears that, because of HKG's unfamiliarity with the Act, BNSC was closely consulted on the specifics of the Asiasat 1 licence and provided most, if not all, of the technical input The licence was, of course, issued in Hong Kong on behalf of the Governor.

3. HKG now want to process licences themselves without direct BNSC involvement, employing consultants as necessary, and taking on locally the responsibility on behalf of the Governor, which BNSC exercises on behalf of the Secretary of State and has, de facto, so far also exercised on behalf of the Governor. You will recall their proposal last year to establish a consultancy arrangement with BNSC, which for a variety of reasons we were unhappy with. They see three areas of expertise which would have to be bought in: legal, insurance and technical. They do not foresee particular difficulties in finding independent advice in these areas, although they are a bit hesitant about technical advice. return for full delegation, they have offered that HKG should indemnify HMG against any liabilities incurred by HMG that might arise as a result of Hong Kong commercial space

In