(d)

CONFIDENTIAL

commercial

autonomy and

on their investment

decisions.

Agreement was

reached

service talks in Peking

during

this September

session of air

that more

services necessary between Hong Kong, Peking and Shanghai. But was not possible to agree details aroused some concern in Hong Kong.

favour of Chinese

and this

Currently

an

imbalance in

airline, CAAC, who operate over 50 scheduled flights per week from China to Hong Kong, compared with 3 scheduled CPA flights to Shanghai and

scheduled flight and one CPA

Airways

on e

flight to Peking each week. Important

British

charter

that

a

fair

agreement

is

reached at

an

date,

in

fair a particular

role for

early

Cathay

Pacific Airways.

His Objectives

(a)

(b)

warn against

too

rapid

political

to Possibly

evolution in Hong Kong.

Possibly to seek

reassurance

that the reduction of

to 4 battalions

adverse affect an

to establish whether

on

stability in the garrison

the garrison in Hong Kong from 5

will not have Hong Kong and will be further reduced in the run up to 1997.

(c)

Possibly

to

persuade

us

to

reconsider

our

nomination

of 3 Bitish recipients of Harold Weill medal.

THIS IS A COPY

THE ORIGINAL HAS BEEN

CLOSED FOR

40 YEARS UNDER FOI EXEMPTION No. 27.(c)......

CONFIDENTIAL

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