G

CONFIDENTIAL

THIS IS A COPY

THE ORIGINAL HAS BEEN

CLOSED UNDER

FOI EXEMPTION NO....27)

the Japanese side (Mitsui) have been slow to commit themselves and to bring in other key players (ie Nippon Steel) and it is possible that the AJC has lost much of their Japanese support.

Hong Kong/Japan Air Services

17.

Arrangements for scheduled air services between Hong Kong and

most countries are presently regulated by UK Air Services Agreements

(ASAS). Air services to Hong Kong cannot of course be covered in

this way post-1997 and, with Chinese consent, we are separating all

those UK ASAS which provide for routes to Hong Kong into two sets of arrangements. On that basis we are negotiating a series of Hong

Kong ASAS which will continue in force beyond 1997. To ensure this, we show the initialled texts to the Chinese for approval before

signature.

18.

19.

20.

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