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to the Chinese side. Six further Air Services Agreements are currently under negotiation.

4.

The long delays between initialling of an

agreement with a foreign country, and the actual signing are, however, a matter of concern to Swires and Cathay Pacific Airways; of the five initialled texts with the

Chinese side, one was passed to them as long as 17 months

ago, the others have been with them for eight months* or longer. These delays are becoming widely-known in foreign diplomatic circles and are causing certain countries to

question whether China is committed to the separation process. We had hoped that the negotiation and conclusion

of Hong Kong Air Services Agreements would by now have

become more routine.

5.

Joint

Swires and CPA have put their faith behind the

Declaration and The Basic Law, and their decision to very large sums of money in new aircraft is based on

The Basic Law as enacted.

invest

6.

When Sir Adrian Swire, Chairman of John Swire &

Sons Limited, and Mr David Gledhill, Chairman of Cathay

Pacific Airways Limited, saw President Yang Shangkun on 25th April 1989, the President expressed much appreciation of Swires' Hong Kong investments and the positive effect this had on people in Hong Kong who are not so confident. Vice Premier, Yao Yilin, and Counsellor Ji Pengfei made similar comments at separate meetings.

assuming delivery of the note on or after 3 September

1990

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