MTHAFK

0. CIVIL AVIATION

RESTRICTED

Implementation of Joint Declaration: Air Services Agreements (ASAs)

Pleased to inform House that exercise to separate Hong Kong's

air service arrangements from those of United Kingdom is running

smoothly.

Aim is to establish provisions which are capable of remaining

in force after 1997 in accordance with provisions of Joint

Declaration. Aviation is an important area for Hong Kong.

First such ASA, between Hong Kong and Netherlands, was signed

on 17 September 1986 and came into force on 26 June 1987.

HK/Switzerland ASA is due to be signed on 26 January in Hong

Kong.

Negotiations are continuing with a number of Hong Kong's other aviation partners.

UK/Hong Kong Air Services Review

Discussions are underway between HMG and Hong Kong Government

to review bilateral air service arrangements.

Cannot predict what outcome will be. We are naturally seeking

an outcome which will substantially accommodate interests of each

side.

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CIVIL AVIATION

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