CONFIDENTIAL
5.
The most recent plenary meeting of the BLDC, its fourth, took
place from 13-17 April in Peking. As far as we know, Sir Y K was
present. Quite a lot of progress has been made, particularly in
five Special Groups established to look at specific areas, in drawing up draft articles. We have been monitoring the process
carefully and feeding in thoughts as and how we can. So far the
drafts follow the Joint Declaration satisfactorily. But there are
difficult areas, mostly technical and legal in nature, where we may
want to bring influence to bear. Sir Y K is not, however, а
suitable channel.
6.
We understand the overall programme for the drafting of the
Basic Law to be:
(a)
1988.
(0)
(c)
Preliminary text produced by the Drafting Committee in early
Published in Hong Kong for consultation;
Revised draft Basic Law produced in late 1988-early 1989 for
submission to the Chinese National People's Congress (NPC)
Standing Committee. Draft published in Hong Kong;
BLDC will then produce a further revised draft for submission
to the NPC Standing Committee in 1990 and promulgation by the
NPC.
E. CIVIL AVIATION: DRAGONAIR
7.
DAL was incorporated in Hong Kong in September 1984,
following the initialling of the Joint Declaration which envisages
special treatment for airlines incorporated in and with their head
offices in Hong Kong. It met these criteria but not the normal
requirements in our Air Service Agreements (ASAs) that it should be
owned and controlled by HMG, HKG or British nationals. It was
originally owned and controlled by Chinese interests.
8.
In October 1985 when Sir Y K acquired an interest in DAL, a