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CONFIDENTIAL

Background

JOINT LIAISON GROUP (JLG)

THIS IS A COPY

THE ORIGINAL HAS BEEN CLOSED FOR

40 YEARS UNDER FOI EXEMPTION No...2760)............-------

JLG has me t once in July and due to meet again in November. Smooth start and agreement on some points (eg Hong Kong's future in Asian Development Bank). Land Commission

progress.

has me t four times in Hong Kong. Good

AIR SERVICES

At first round of talks in Peking both sides agreed need for additional capacity on routes Hong Kong/China routes, particularly Peking. Hope to persuade Chinese to allow Cathay Pacific Airways (CPA) to operate scheduled

services to Peking and Shanghai and would like to

to leave

scope for other Hong Kong based airlines to operate

routes to other Chinese cities. Chinese seem against

idea of more than one Hong Kong based airline operating

into China or to any Hong Kong based airline operating to destinations other than Peking and Shanghai. We are

CONFIDENTIAL

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