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about the value of a selective nationality scheme and our efforts to
mobilise international support for an "Armageddon assurance". He
has described both those measures as "short term expedients", which
will be seen as an attempt to wash our hands of the problem.
Investment
5.
A delegation from the Hong Kong General Chamber of Commerce led
by Dr Sohmen visited the UK in September with the aim of reassuring
potential British investors about Hong Kong's economic prospects
following recent events in China and encouraging them to look to Asia/Pacific rim as a major growth area of the future. (The UK's
share of foreign investment in manufacturing has slipped from fourth
place to seventh in the last few years, although British firms have
traditionally tended to invest in other areas of the economy). The
delegation also asked whether we could do more to persuade our
European partners to invest further in Hong Kong.
UN/PRC Air Services Negotiations: Dragonair
5. Dr Sohmen is the Managing Director of Dragonair, Hong Kong's
second largest carrier after Cathay Pacific. He is concerned about
the lack of opportunities given to Dragonair for scheduled services
to Mainland China and may enquire about the UK/PRC air services
negotiations which took place from 16-20 October in Peking. Two
rounds of negotiations took place earlier this year. Progress has been slow because the Chinese have insisted that their proposals
should be considered and agreed before the UK proposals are examined. In the latest round of talks we pressed hard for a more
reciprocal approach and for the following concession of the Hong
Kong-Mainland China route:
(a) scheduled services for Hong Kong Dragon Airlines on a range of regional points in China (excluding Peking and Shanghai).
(b)
(c)
acceptance of Cathay Pacific's operations to Peking and
Shanghai (currently agreed only on a temporary basis).
an improved balance of opportunites (both frequencies and
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