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 discus 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.

The foregoing record represents the understandings reached

between the Government of the United Kingdom of Great Britain

and Northern Ireland and the Government of the People's Republic

of China upon the matters referred to therein.

mou.BACKBRIEF.JRB

SLM

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