TNAG-2857-FCO40-4110-Satellite-Licensing-and-Asia-Satellite-Telecommunications-Co-1993 — Page 79

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CONFIDENTIAL

046452 MDLOAN 5312

CONFIDENTIAL

FM FCO

TO PRIORITY HONG KONG

TELNO 24

OF 121657Z JANUARY 93

INFO ROUTINE PEKING, UKREP JLG HONG KONG

YOUR TELNO 2524: PROPOSAL FOR THE ESTABLISHMENT OF AN AUTONOMOUS HONG KONG SATELLITE LICENSING REGIME

1. THANK YOU FOR TUR AND FOR YOUR FURTHER THOUGHTS ON POSSIBLE LICENSING ARRANGEMENTS FOR SATELLITES IN HONG KONG BEFORE 1997, WHICH WERE DISCUSSED BY PYNE (HKG), WONG (HKG), ROBINSON (BNSC) AND MARSHALL (FCO) AT BNSC ON 14 DECEMBER.

2. YOU PROPOSE THAT AN AUTONOMOUS HONG KONG SATELLITE LICENSING AUTHORITY BE ESTABLISHED WHICH WOULD EMPLOY ITS OWN CONSULTANTS TO ENSURE THAT SATELLITE OPERATORS (AND HENCE HKG AND HMG) WERE FULLY INSURED AGAINST LIABILITIES ARISING FROM THEIR SATELLITE OPERATIONS. OUR INITIAL REACTION TO THIS PROPOSAL IS FAVOURABLE, ALTHOUGH OBVIOUSLY WE WOULD NEED TO BE FULLY SATISFIED WITH THE PROPOSED INDEMNITY ARRANGEMENT AND WITH THE PROPOSED LICENSING REGIME BEFORE ANY SUCH ARRANGEMENT COULD BE PUT IN PLACE.

3. WE AGREE THAT GREATER AUTONOMY FOR HONG KONG IN THIS FIELD IS A WORTHWHILE OBJECTIVE: IT WILL ENABLE HONG KONG TO GAIN EXPERIENCE AND TO ESTABLISH ITS OWN SOURCES OF EXPERTISE BEFORE 1997. THE LONGER ESTABLISHED THE AUTONOMOUS LICENSING REGIME, THE MORE LIKELY IT WILL BE THAT THE CHINESE WILL FOLLOW GENERAL PRECEDENT AND ACCEPT THE CONTINUATION OF THIS REGIME AFTER 1997. BUT OUR IMMEDIATE CONCERN MUST BE THAT A HONG KONG LICENSING REGIME SHOULD BE CONSTRUCTED ON A SOUND LEGAL AND ADMINISTRATIVE BASIS.

4.

THE PRINCIPAL CONCERN OF THE BNSC IS TO ENSURE THAT ALL SATELLITE OPERATIONS BY COMPANIES INCORPORATED IN THE UK AND ITS DEPENDENT TERRITORIES ARE FULLY INSURED SO AS TO PROTECT HMG AGAINST LIABILITIES ARISING FROM THOSE OPERATIONS. THE BNSC WILL THEREFORE NEED TO BE SATISFIED WITH THE LICENSING AUTHORITY AND WITH THE INDEMNITY ARRANGEMENT. FIRSTLY, THE LICENSING REGIME WILL NEED TO HAVE ACCESS TO CONSULTANTS WITH THE RIGHT LEVELS OF LEGAL, TECHNICAL AND INSURANCE EXPERTISE TO CHECK THAT SATELLITE

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