CONFIDENTIAL

SECRETARY OF STATE'S MEETING WITH SIR ADRIAN SWIRE,

19 FEBRUARY

Points to Make

Aircraft Orders

-

Have seen your correspondence with PM. Greatly appreciate your commitment to UK manufacturers in particular

Rolls-Royce. Any news on purchase of B-777's with Rolls Royce engines?

Air Services Agreement (ASAS)

-

Know you are keen for progress on this. So are we. Principal problem remains third country airlines using Taiwan as point on their services to Hong Kong.

- We have emphasised to the Chinese the economic/investment implications, and the real dangers for Hong Kong if the uncertainty on this issue continues. Grateful for anything you can do to reinforce this in your contacts in Peking.

- In his meeting with the Chinese Premier in New York, the

Prime Minister urged that progress in JLG be speeded up.

Qian Qichen's visit (9-10 March) a chance to give the ASA issue a political push.

- To prepare the ground, we will be having informal talks with Chinese in JLG soon. Have seen some signs of Chinese interest in making progress. A high priority for the Qian

visit.

TIMABZ/1

TG

CONFIDENTIAL

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