9.

The most complex area of air services to be

tackled, both now and with a view to preserving Hong Kong's

autonomy beyond 1997, is the UK/Hong Kong/PRC

relationship. It is not possible for Hong Kong's air

before 1997

services relationship with the UK /to be governed by a straightforward "separated" ASA since a treaty cannot be concluded between two parts of the same state.

air services relationship between HK and considerations will apply to the /PRC after 1997.

the rest of the

Similar

amit.

10.

Negotiations on the bilateral relationship between

the UK and Hong Kong concluded with agreement in February 1989 on a new package providing enhanced opportunities

[based on parity of frequencies] for both UK and Hong Kong

airlines. UK/PRC negotiations on, inter alia, revised Hong Kong/PRC air services arrangements are currently in

progress, with a further round of talks having begun on

10 April 1989.

11.

As far as Hong Kong is concerned, scheduled services between Hong Kong and China are currently regulated by a Confidential Memorandum of Understanding on regional routes associated with the 1979 UK/PRC ASA.

has been supplemented by seasonal inter-airline agreements concerning services between Hong Kong and Peking and Shanghai, and by inter-governmental arrangements on services to Peking concluded in November 1985.

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