CONFIDENTIAL

17. Strong pre-emptive bid would be desirable and in this context early and firm commitments to the consortium are important.

18.

Very much hope this example of Anglo/Japanese cooperation will

be a success.

Hong Kong/Japan Air Services

19.

ASA separation of mutual benefit: other countries have already acknowledged this by their willingness to negotiate separated

agreements.

20. Chinese have recently reiterated their commitment to the

separation programme: Japanese concerns therefore unfounded.

21. Japanese could seek further assurance by approaching the Hong Kong and Macao office of the Chinese MFA.

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