A backdoor that will be exploited by criminal third-parties. Even if you (against all sense and reason) trust the US and UK governments, this is a move that will expose your data to criminals.
Not necessarily. Simplest implementation is to use government public key to encrypt session key and include that encrypted session key into a message. You can implement it with open source code, yet only government who possesses corresponding private key can decrypt the message. I think that it'll be secure enough. If private company can keep their CA key in secret, government can do that too. Hardware Security Modul…
Yes, that sounds like a secure system. Surely no private keys would ever leak out of a government through incompetence or corruption.