CAZAEB

Q CIVIL AVIATION

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1.

(ASAS)

Implementation of Joint Declaration: Air Services Agreements

The exercise to separate Hong Kong's air service arrangements from those of the United Kingdom continues to run smoothly, and is making good progress. Aviation is an important sector in Hong Kong. Our aim is to put in place provisions which are capable of remaining in force after 1997, in accordance with provisions of the Joint

Declaration.

The first such ASA, between Hong Kong and the Netherlands, was signed on 17 September 1987. A Hong Kong/Switzerland ASA was signed

on 26 January in Hong Kong, Negotiations are continuing with a number of Hong Kong's other aviation partners.

2.

UK/Hong Kong Air Services Review

Discussions are under way between HMG and the Hong Kong Government to review bilateral air service arrangements. We aim to

conclude the review at an early stage.

We are naturally seeking an outcome which will satisfactorily

accommodate the interests of each side.

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