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end of the 1980s. It is built on reclaimed land

technically in the New Territories.

being considered.

A new airport is

This too would have to be in the New

Territories. A move would require Chinese consent to

new air traffic patterns, and some assurance of

continued United Kingdom responsibility for air services to

justify the very large investment (about £4 billion, including

necessary associated investment) which could not possibly

be recouped before 1997, let alone the finance raised in

present circumstances. Thus, while uncertainty over the

future continues, no decisions on the new airport can be

taken.

9.

Sovereignty is critically important in the context of

air services. Article 1 of the Chicago Convention 1944,

to which the United Kingdom and China are both signatories,

recognises 'that every State has complete and exclusive

sovereignty over the air space above its territory'.

Article 2 defines territory of a State as 'the land areas

and the territorial waters adjacent thereto under the

sovereignty, suzerainty, protection or mandate of such

State'. On these foundations all air services have to be

agreed by the States exercising sovereignty over the

territories concerned, and it is normal to share the services

on an approximately equal basis where they are international

services but to reserve them for national carriers only

where they are 'cabotage services linking points in a

country's own territory'.

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/Possible

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