B
C
D
Background
References
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A.
B.
DTp Background Note on Cathay Pacific Airways (CPA).
ASAS: Background Note
C.
Letter of 31 August from Sir Adrian Swire to Lord
Caithness: Swires' approach to the Chinese
D.
E.
F.
G.
FCO telno 713: Agenda for UK/PRC air services talks
Hong Kong telno 3433: Dragonair services to PRC
Hong Kong telno 3503 to FCO and Singapore: Singapore Airspace Industries
FCO telno 845 to Singapore and Hong Kong: Singapore Airspace Industries
Air Services Agreements (ASAs)
1.
As the Minister is aware, the process of clearing draft ASA texts with the Chinese has ground to a halt. The
background is set out in the attached note. Swires have
pursued a helpful initiative by writing to the Chinese Ambassador in London, setting out their concerns in a paper which they also passed to NCNA in Hong Kong.
UK/PRC Air Services
2.
We expect to resume air services talks with the PRC
early next year, on the basis of an agenda we proposed to
CAAC in September. Hong Kong are concerned that we should not concede through-running rights to CAAC (ie permitting CAAC to serve points beyond Hong Kong) on the basis that this would undermine Hong Kong's aviation autonomy and the value of its ASAS. The main priority at the talks will be
to secure access to the Northern/Siberian routine between
Peking and Europe for UK, Hong Kong and Chinese carriers.
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E
In an
3. Swires are concerned at the large imbalance in terms of
market access and capacity which exists on Hong Kong/PRC routes between Hong Kong airlines (Dragonair) and Chinese
carriers. CAAC has produced a number of spurious arguments
to defend this imbalance (Hong Kong telno 3433).
attempt to redress this imbalance, Hong Kong are freezing CAAC's existing services and rejecting their applications
for new routes and additional capacity. There are some
signs that this strategy in starting to have an effect.
Hong Kong/Vietnam Air Services
4.
The Hong Kong Air Transport Licencing Authority (ATLA)
announced its decision on 16 March to approve the
applications of Cathay Pacific Airways (CPA) and Air Hong Kong (AHK) for licences to serve Hanoi and Ho Chi Minh City.
An airline licensed by ATLA (an independent statutory body) cannot, however, commence services on the route concerned
until the necessary traffic rights have been negotiated at
Government level. Both CPA and AHK have lobbied the Hong
Kong Government hard to be allowed to commence services.
is
5. HKG have taken the view hitherto that the development of
air services between Hong Kong and Vietnam, and the
improvement in trade which would be consequent upon that,
one of the very few "carrots" they have to offer the
Vietnamese in exchange for co-operation over the
repatriation of Vietnamese boat people (VBP). Therefore, until such co-operation is forthcoming, it is unlikely that HKG would be prepared to allow direct air services whether
scheduled or charter between Hong Kong and Vietnam, other
-
than UNHCR charters operated for repatriation purposes.
However, the Governor will be meeting officials on
19 December to review the policy.
London Traffic Distribution Rules
For the last 12 years, the London Traffic Distribution
6.
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