CONFIDENTIAL
FM HONG KONG
TO DESKBY 13093OZ FCO
TELNO 1871
OF 13084OZ JULY 92
INFO IMMEDIATE DTP, PEKING
CONFIDENTIAL
HKC 181/36
W 1992
014526
MDHIAN 1596
CM
پھر
DTP FOR IAD
PEKING TELNO 95: CAAC AND CTS PURCHASE OF CATHAY PACIFIC SHARES
1. CATHAY PACIFIC ANNOUNCED AT 1120H LOCAL TIME ON 13 JULY THAT THE TEN PERCENT SHAREHOLDING IN IT HELD INDIRECTLY BY THE HONG KONG AND SHANGHAI BANK HAD BEEN PURCHASED IN EQUAL PORTIONS BY THE CHINA NATIONAL AVIATION CORPORATION WHICH IS A WHOLLY OWNED SUBSIDIARY OF CAAC AND BY THE CHINA TRAVEL SERVICE (HOLDINGS) HK LTD. THE CHAIRMAN OF CNAC HU YIZHOU AND THE CHAIRMAN OF CTS LIN SHUI LONG WILL BE INVITED TO JOIN THE CATHAY PACIFIC BOARD. THE PRESS RELEASE ISSUED BY CPA IS BEING FAXED TO YOU AND PEKING FOR
INFORMATION.
2. WE MAY NEED TO REASSURE OUR AVIATION PARTNERS THAT THIS INCREASED SHAREHOLDING BY MAINLAND INTERESTS DOES NOT IN ANY WAY AFFECT CATHAY PACIFIC'S ELIGIBILITY FOR ASA DESIGNATION PURPOSES. IT IS LIKELY TO BE WELCOMED IN HONG KONG AS A SIGN OF CO- OPERATION BETWEEN THE HONG KONG AND CHINESE AVIATION AND TOURISM SECTORS. WE HOPE THAT THE INVOLVEMENT OF CTS IN PARTICULAR MIGHT ASSIST IN OUR EFFORTS TO INCREASE AND IMPROVE HONG KONG/PRC AIR SERVICES.
PATTEN
YYYY
MAIN
34
.AIR SERVICES
AMD
LEGAL ADVISERS
PUSD//MR HARRISON E203
DISTRIBUTION
41
PS/MR LENNOX-BOYD
PS/PUS
SIR J COLES
MR CROWE
PAGE
1
CONFIDENTIAL