-5-

feeling towards China.

8.

(CS also stressed the importance of

agreement on the modalitiesfor extension of New Territories leases).

Mr. Boyd said that all this proved the importance of

good communications to Hong Kong, a point also made by the

Governor earlier in the day. There was something Lu Ping

should know. He would recall his discussions on civil

aviation with Mr. McLaren in September 1984, during the

negotiations, in the course of which we had explained our

separating the portions of UK ASAS with

intention of

third countries into UK and Hong Kong components.

Lu nodded.

Mr. Boyd said that we were now going to talk to a few partner

countries, with the aim of achieving a split.

The general idea

was to split the form rather than change the substance

This corresponded to the pattern envisaged

significantly.

in Section 9 of Annex I.

Lu did not react directly.

Across

the table he asked Qiao Zonghuai whether this had been discussed

in the JLG. Qiao said not. Li said ASAS figured on the

list handed over by the British.

Mr. Boyd said that we had

to get on with the Air Services, taking the natural windows of

opportunity and using as a criterion the ease or otherwise of

achieving a technical split.

There were twenty four ASAS,

approximately, to deal with and we had done nothing so far.

These could not be handled like the items on that very long list.

So we were starting to talk to one or two partners. We

The intention to split had

thought Lu Ping should know.

been made clear during the negotiations; indeed it underlay

the whole approach in Section 9. Lu again nodded at this

particular point. But he made no verbal response.

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