TNAG-2857-FCO40-4110-Satellite-Licensing-and-Asia-Satellite-Telecommunications-Co-1993 — Page 93

CONFIDENTIAL

046452

MDLOAN 5312

OPERATORS ARE PROPERLY INSURED BEFORE LICENCES ARE ISSUED. SECONDLY, THE NEGOTIATED INDEMNITY ARRANGEMENT WILL HAVE TO BE COMPREHENSIVE AND ACCEPTED BY FCO AND BNSC LEGAL ADVISERS AS A SOUND LEGAL BASIS FOR AN AUTONOMOUS LICENSING REGIME IN HONG KONG. SUBJECT TO THESE TWO POINTS, THE BNSC IS PREPARED TO CONSIDER A SYSTEM WHERE IT DOES NOT VET INDIVIDUAL LICENCE APPLICATIONS.

5. THE NEXT LICENCE TO BE ISSUED IN HONG KONG WILL BE FOR EPSTAR ONE, SCHEDULED FOR LAUNCH IN MID 1994. WE AGREE THAT IT WOULD BE HELPFUL IF NEW ARRANGEMENTS COULD BE IN PLACE BY THEN. HOWEVER THIS CANNOT BE GUARANTEED DUE TO THE LEGAL PROBLEMS WHICH COULD ARISE WITH THE INDEMNITY ARRANGEMENT AND OTHER MATTERS.

6. WE AND THE BNSC ARE CONSULTING OUR LEGAL ADVISERS ABOUT THIS PROPOSAL. IT WOULD BE HELPFUL IF YOU COULD NOW PRODUCE A FORMAL PROPOSAL FOR OUR DETAILED CONSIDERATION.

HURD

YYYY

ΜΑΙΝ

.HK POLICY

70

DISTRIBUTION

72

PLANNERS

HKD

PUSD

FED

LEGAL ADVISERS//MS BARRETT

./MS BROOKS AND MR GILES

NEWS D

RAD

ESED

PS

PS/MR GOODLAD

SIR J COLES MR HUM

NTCD

ADDITIONAL

2

HO//B4DIV MR C KELLEY

DTI//BNSC/MR P ROBINSON

~~~~

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