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My Ref:

C Whomersley Esq FCO Legal Advisers K171

King Charles St Whitehall1

HKC 181/19

Dear Chis

Your Ref:

НКС

- 6 MAR 1992

3 March 1992

: ст

HONG KONG/SCANDINAVIA AIR SERVICES AGREEMENTS

VICES

@

As you will see from Hong Kong telno 479 and FCO telno 254 in reply (copies enclosed), agreement has been reached that Hong Kong/Scandinavia air services should be operated on a provisional basis pending entry into force of the ASAS.

We now need urgently to consider the form such provisional arrangements should take. In the case of separated ASAS we have, as you know, developed a suitable formula whereby the UK and the partner in question implement the arrangements on a provisional basis under their existing ASA. Recent examples of this are Australia and Singapore.

The present case is, however, somewhat different in that the Scandinavian ASAS with Hong Kong are new ones outside the separation programme. While it may of course be possible for the UK and the Scandinavian countries to extend the scope of their ASAS SO as to apply the Hong Kong arrangements provisionally, such a move would be cumbersome and more importantly would set an undesirable precedent for any action that the Hong Kong SAR might wish to take after 1997 in accordance with JD 120, which provides for the SAR, with the authorisation of the PRC, to negotiate and conclude new ASAS on its own.

Hong Kong are therefore proposing that the authority they have been given by the UK to negotiate the Scandinavian ASAS should cover provisional application by Hong Kong and the Scandinavians of any arrangements between them. Thus they would like to add the following final paragraph to each of the three CMUs:

"The delegations understood that the arrangements set out in paragraphs 3 to 10 above would be applied provisionally from the date of signature of this Memorandum until the entry into force of the Agreement.'

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