CONFIDENTIAL

MR GOODLAD'S MEETING WITH SIR ADRIAN SWIRE: 26 AUGUST 1992

Points to make

We remain concerned at the lack of progress in the JLG over

ASAS. Mr Patten has been looking at this problem since his

arrival in Hong Kong. He has made a number of proposals that we are studying now.

-It remains our intention to achieve progress by the next

meeting between the Secretary of State and his Chinese counterpart in New York in September, but obviously notmuch

time is now left. Have you seen any evidence that CNAC's stake

in Cathay has affected Chinese attitudes to this question?

- We are all very much aware of the importance of CPA to Hong

Kong and to Britain, not least through its consistent support

for Rolls Royce as instanced by the recent decision to purchase

Trent engines for the Boeing 777. I have noticed that

Rolls-Royce are now having success in southern China. Have

little doubt that CPA's influence pays a big part in this.

CONFIDENTIAL

swire.meeting/ASA

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