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may not be correct to ask the Board to comment now.

Mr. Wu then noted

that the terms of reference required. the Board to advise Government on the development of services, and on such other aviation matters as Government my from time to time refer to it He was of the opinion that it was appropriate for the Board to comment on this matter, and the Chairman stated that as the Paper had been presented to Members he felt that the Board was acting within its terms of reference in considering and commenting on that. Paper. He stated that the Director of Civil Aviation usually initiated: consultation by asking the AAB for advice, that the Paper now before the Members sought advice, and unless Members wished not to comment and give advice then they should otherwise proceed. It was agreed unanimously that the Paper should be considered and comments formulated.

2.3.

2.4. Mr. Ting considered that there should have been prior consultation between the United Kingdom and Hong Kong Governments before the announcement

The Chairman noted that the had been made of the licensing decision.

Hr. Bluck then joined the meeting with apologies for lateness.

Hong Kong legislation on the licensing of air services was out of date, and that it was Government's intention to review and renew the legislation in the light of advice to be received from an expert in this field (the former legal adviser to the United Kingdom Civil Aviation Authority) who would shortly be arriving in the territory to advise on the subject. He stated that there were two aspects of the licensing of airlines which required detailed study, firstly the licensing of British airlines on routes from Hong Kong, secondly the question of negotiation of air services routes with foreign countries. He stated that the latter aspect was one in which it would be extremely difficult for Hong Kong to be completely independent from United Kingdom and probably constitutionally impossible. tir. Ting pointed out that the Hong Kong Government has a much better knowledge of the region and should ensure that HMG takes no action detrimental to Hong Kong's interests. Mr. Wu then proposed that the Board endorse Government's actions in overhauling the legislation. ir. Bluck, declaring an interest, suggested that the Board night wish to advise Government on factors which should be taken into account in the revision to the

·legislation. There was then some discussion with regard to the need for Hong Kong to carry out its own negotiations on air services affairs. Mr. Cheong gave the example of textile negotiations which were negotiated independently by Hong Kong but under the flag of the United Kingdom. Mr. Wu noted the anomaly of a situation where for textiles we negotiated independently but for air services we did not. Mr. Ting was strongly of the opinion that Hong Kong should protect its own interests, that national pride was involved; he considered that Hong Kong should be given guidelines by the United Kingdom but then allowed to negotiate independently. The Chairman pointed out that the situation with regards to Hong Kong's participation in air services negotiation had very much improved over the last 12 months. The Hong Kong representative was now allowed a degree of independence in putting forward the Hong Kong view although the situation was not as clear cut as it should be, and he agreed that he would endeavour to formulate recommendations to be submitted at a later date with regards to the question of negotiation of air services rights.

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