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the Chinese any text agreed during future negotiations before

being fully committed to it, but we will not be showing them the

texts of any accompanying confidential documents that may have been negotiated.

7. The draft Hong Kong/Indonesia ASA which we have

have proposed closely follows the agreed

agreed text of Hong Kong ASAS already

concluded in order to minimise the chance of the Chinese finding difficulties. Some refinements have been made in the drafting,

but these are not matters of substance and they should not cause

the Chinese any concern.

8. The UK believes that Indonesia will be politically well

disposed towards helping with the steps necessary for the

implementation of the JD, and trusts that the assurances about

the Chinese attitude, together with the precedent set by the ASAS

already signed, will ensure that there is no political difficulty

in negotiating and concluding an ASA with Hong Kong.

9. The UK wishes to make it clear that it is now continuing a

process which was discussed exhaustively with the Chinese during

the negotiations leading to the JD and subsequently and which they support. We are confident that a Hong Kong/Indonesia ASA on the lines of the draft proposed would be beneficial to Hong Kong

and Indonesia and would provide a proper basis for the

continuation of scheduled services up to and beyond 1997.

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