SECTION IX: CIVIL AVIATION

CONFIDENTIAL

TRUE THAT THIS SECTION OF THE AGREEMENT GAVE RISE TO DIFFICULTY?

74. Precise details must remain confidential. Complicted area of law and practice, which involves both international and local

Agreement makes clear that Hong Kong will continue to be a

centre of international and regional aviation.

issues.

THIS PART OF THE AGREEMENT JUST FOR CPA?

75. No. Provisions affect all those with an interest in

Hong Kong's civil aviation and civil aviation related businesses.

There could be other local airlines by 1997. In general agreement

takes into account particular significance and needs of local civil

aviation business.

WILL EXISTING AIR SERVICES AND AIRLINE OPERATIONS BE MAINTAINED?

76. Agreement makes clear that airlines incorporated and having their principal place of business in Hong Kong and civil aviation

related businesses may continue to operate. As for air services, the SAR Government will be able, under specific authorisations from

the CPG, to renew or amend air service sagreements and arrangements previously in force, with rights contained in previous agreements and arrangements being as far as possible maintained.

WHO WILL NEGOTIATE AVIATION LANDING RIGHTS IN AND FOR HONG KONG? 77. Agreement provides for Central People's Government, in consultation with SAR Government, to negotiate such rights for air services which involve stops both in SAR and in other parts of the People's Republic of China. Landing rights for services without stops in other parts of the People's Republic of China will be negotiated by the SAR Government under the authority to be given to

it by the CPG.

SAR'S STATUS AS A CENTRE OF INTERNATIONAL CIVIL AVIATION?

status as

78. Agreement clearly provides for maintenance of Hong Kong's

SAR will centre of international and regional aviation. enjoy considerable autonomy in this sphere. It will be specificlaly

authorised to renew or amend air

renew or amend air services agreements previously in force and to negotiate and conclude new agreements or provisional

CONFIDENTIAL

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