HONG NG'S HIGH DEGREE OF AUTONOMY

Geneva.

14. In practice the Hong Kong Government has enjoyed

extensive autonomy for many years. We are now seeking

wherever possible to formalize those arrangements so as

to allow the Hong Kong authorities to exercise now the

high degree of autonomy that Hong Kong is to enjoy after

1997. The Hong Kong Government manages most of its

internal affairs by itself, while keeping HMG generally

informed. Hong Kong also exercises full autonomy in

external trade matters and, as a separate contracting

party to the GATT, has its own representation the GATT in

There are plans for similar representation to

the EC. We are also encouraging the establishment of

free standing Economic and Trade Offices in the capitals

of some of Hong Kong's major trading partners.

Similarly, through the Air Services separation process,

we are seeking to ensure that Hong Kong's autonomy in

aviation matters is a well established fact before 1997.

This is important for the preservation of Hong Kong's

role as an important international civil aviation centre,

and for the protection of the legitimate interests of

Hong Kong airlines. Such autonomy is not of course

inconsistent with the progressive introduction of more

liberal civil aviation policies, which we are urging the

Hong Kong authorities to adopt, and which would be in the

wider interests of Hong Kong and the travelling public.

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