BEEAES

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VISIT TO HONG KONG BY LORD GLENARTHUR, 16-19 SEPTEMBER

BRIEF NO 16: PRESS CONFERENCE

(viii) Air Services

(Imbalance against Hong Kong in HK/PRC services?)

1.

HMG firmly committed to furthering interests of Hong Kong civil aviation industry. Colleagues in DTP constantly seeking to improve rights of Hong Kong airlines on all routes, including those to PRC. But negotiations take time. Instant results not possible.

(Recent ATLA decision to grant Dragonair licences to serve Peking and Shanghai)

2.

For HKG taking account of all factors, to decide whether rights for Dragonair to serve Peking and Shanghai should be sought in bilateral negotiation. If decided rights should be sought HMG

Not yet at would be responsible for negotiating them with Chinese.

Decisions first needed here in Hong Kong.

that stage.

(Beyond points for CAAC through Hong Kong?)

3.

If Chinese authorities sought such services, would be a matter for discussion within wider context of HK/PRC air services.

(HK/UK air services relationship?)

4.

Healthy. Benefits to both sides under current arrangements.

Both sides Of course, regular, close contact between HMG and HKG. always ready to look at ways of improving arrangements to mutual

benefit.

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