DAY 4:

CONFIDENTIAL

00653 MDLIAN 1831

WE GAVE THE CHINESE SIDE A FULL BRIEFING ON THE INVESTIGATION OF ACCIDENTS, WHICH THEY HAD PARTICULARLY REQUESTED. I PRESSED THE CHINESE SIDE FOR EARLY PROGRESS ON THE LOCALISATION OF CIVIL AVIATION LEGISLATION. ON GUO'S REQUEST FOR A PAPER ON THE AIR NAVIGATION (OVERSEAS TERRITORIES) ORDER, I HANDED OVER A PAPER EXPLAINING THAT PROVISIONS TO LOCALISE IT WILL NOT BE INCLUDED IN THE FIRST STAGE BILL. ON THE TEXT OF THE BILL,

I EXPLAINED THAT THE TWO SIDES AGREED AT/JLG XI IN DECEMBER 1988 THAT WE SHOULD NOT HAND OVER DRAFT LOCALISING BILLS UNTIL SHORTLY BEFORE GAZETTING. NEVERTHELESS, I HANDED OVER ANOTHER PAPER WHICH EXPLAINED IN DETAIL THE SCOPE AND CONTENTS OF THE EXPANDED FIRST STAGE BILL (COPIES OF MY SPEAKING NOTE, AS WELL AS THE TWO PAPERS HANDED OVER, FOLLOW BY BAG) I SAID THAT WE STOOD READY FOR FURTHER EXCHANGES THROUGH THE JLG OFFICES AND SUGGESTED THAT IF NECESSARY, WE COULD HAVE ANOTHER EXPERTS MEETING ON 25 NOVEMBER IN HONG KONG OR IN PEKING IF THE CHINESE SIDE

PREFERRED.

2.

"

LIU, WHO WAS LEADING THE CHINESE TEAM, THANKED US FOR OUR BRIEFINGS AND HOSPITALITY, BUT STRESSED THAT THE CHINESE SIDE WERE NOT READY AT THAT STAGE TO RESPOND SUBSTANTIVELY TO OUR LOCALISATION PROPOSALS. THEY WOULD STUDY THE PAPERS HANDED OVER BEFORE RESPONDING TO OUR SUGGESTION FOR ANOTHER ROUND OF EXPERT

TALKS.

FORD

YYYY

MAIN

50

DISTRIBUTION

53

.JLG RESTRICTED

HKD

NEWS D

PUSD

FED

RAD

LEGAL ADVISERS//MS BARRETT LEGAL ADVISERS//MS BROOKS

MR HUM

ADDITIONAL

3

.JLG RESTRICTED

CAOFF //MR CHARLTON CAOFF //MS D CORNER

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CONFIDENTIAL

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