vi) Agreement on the principles for the conclusion of separate Air Service Agreements between Hong Kong and its aviation partners,

which are capable of remaining in force after 1997. The first such Air Service Agreement was signed between the Government of Hong Kong and the Government of the Kingdom of the Netherlands in The Hague on

17 September 1986. Subsequently, agreements have been signed with

Switzerland, Canada and Brunei. Negotiations with other partners continue.

vii)

Agreement on the introduction of a new pension scheme for civil servants in Hong Kong.

viii)

Agreement that Hong Kong should become a separate member of

the Customs Co-Operation Council (CCC) and should continue as such

after 1997 in the name of "Hong Kong, China". Hong Kong was duly

accepted as the 99th member of the CCC on 25 June 1987. As a result

of the JLG's efforts Hong Kong has, and will retain after 1997, a

separate standing in relation to the General Agreement on Tariffs

and Trade, the Multi-Fibre Arrangements and the CCC. It is thus

better placed to protect its own interests in world trade before and

after 1997.

ix) Good progress in discussions on the important subject of the

defence of Hong Kong and the maintenance of its public order. The

two sides agreed in principle that the Police Force should undergo

appropriate expansion to enable it to discharge its responsibility

for maintenance of public order before and after 1997, and in

particular anti-illegal immigration tasks on the border currently

undertaken by the British forces. The existing Auxiliary Air Force

will be reorganised to form a civil Gvoernment Flying Services

Department, with responsibility for providing the Hong Kong

Government with necessary flying services. The Chinese side have

also expressed understanding of the provisional plans for the

withdrawal of the British Garrison from Hong Kong, which have been

outlines by the British side. Her Majesty's Government's primary

objective in this crucial and sensitive area is to ensure that Hong

Kong's security and stability is maintained throughout the period up

to 1997, and that suitable arrangements are made for defence and public order thereafter on the basis of the provisions in the Joint

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