(ii) The Hong Kong Government is willing to appoint a

Hong Kong based individual from the Bank of China Group to

sit as a full member on the board of the Airport Authority.

This member will have equal rights with the other members.

The Chinese side will no doubt give the Hong Kong Government

some suggestions as to who this member should be.

(iii) The Hong Kong Government will set up a Consultative

Committee on the new airport and related projects. The

Committee may discuss any relevant matter but will have no decision-making power. It should not delay the progress of the projects.

(iv) The Hong Kong Government will inform the Chinese side of the members of the Airport Authority and

Consultative Committee whom it is proposed to appoint, and will be willing to listen to any views that the Chinese side

might have, before deciding on the appointments.

The Hong

Kong Government is willing to consider the appointment of a Vice-Chairman of the Airport Authority about two years after

its establishment.

G. Both Governments wish to intensify consultation and

cooperation over Hong Kong issues in the approach to 30 June

1997. As part of this intensified consultation, the British

Foreign Secretary and the Chinese Minister for Foreign

Affairs will meet twice a year to discuss matters of mutual

concern and the Director of the Hong Kong and Macau Office

under the State Council and the Governor of Hong Kong will also hold regular meetings.

This Memorandum of Understanding will come into operation on

signature by Heads of Government.

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