CONFIDENTIAL
CAZADM (2)
Background
AIR SERVICES AGREEMENTS (ASAS)
1. Two separated Hong Kong ASAS, with the Netherlands and Switzerland have been concluded, and a Hong Kong/Canada ASA is due to be signed shortly. Negotiations are continuing with a number of Hong Kong's other aviation partners (including Thailand, the FRG and France), and others are planned.
2.
A further 21 existing UK ASAS which include Hong Kong remain to be separated prior to 1 July 1997. There may also be a need in time for new ASAS to be created where there is currently no air services relationship or only less formal arrangements.
3.
Arrangements have been worked out for the Chinese to be shown the text of each ASA (but not any confidential memoranda) once it has been initialled and before signature. They operate slowly, no doubt because the Chinese aviation authorities remain hostile to the separation process. The text of an initialled agreement between Hong Kong and Brunei is currently with the Chinese, and we have had to explain to them our intention that Hong Kong should take the lead in negotiating with Nepal (where there is no UK ASA to be
separated).
REVIEW OF UK/HONG KONG AIR SERVICES
4.
We
The Review began in 1987. Ministers agreed that the aim of the Review would be to move towards a more balanced civil aviation relationship between Britain and Hong Kong. The last round took place in March, and the next round is due in the early summer. hope that the review can be brought to a conclusion as soon as possible. Department of Transport officials will be approaching the next round with this in mind.
5. The eventual outcome is difficult to predict. The two sides continue to hold divergent views, for example on the question of multiple designation of carriers and a more liberal tariff regime. The Hong Kong Government approach is more conservative than that of
CONFIDENTIAL