air.ADM.JRB
1
Background
TALKS WITH CHINA ON HONG KONG
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First two rounds took place in Peking on 22 - 24 and 28 29 April. The third round will be in Peking, 21 - 23 May.
The delay between rounds two and three is due to the fact that the Chinese representative, Vice-Foreign Minister Jiang Ehzhu, had to accompany his Foreign Minister on a two-week trip to Europe. Although we have agreed that the contents of the talks should remain confidential, the press has carried accurate reports (mostly from Chinese sources) that the first two rounds did not get beyond Chinese pressing for prior agreement to their interpretation of basic "principles" for the negotiations.
AIRPORT
We have handed to the Chinese side, in confidence, a third financing proposal for the airport. The Governor proposes to make the paper public later in the month (but not before the next round of discussions on the 1994/95 elections). The major problems which we face in the short term are securing further funding (later this month) for the operations of the Provisional Airport Authority, and the award of the franchise for the Western Harbour Crossing (due in June). Construction programme still on target for completion by 1997 provided that we can obtain Chinese approval on overall financing package.
CHINESE THREATS OF DISCRIMINATION AGAINST BRITISH FIRMS
The only evidence that we have of any actual discrimination is the material provided by Jardines. We and Jardines have taken the matter up with the Chinese Embassy here, and our Embassy in Peking have made representation to the Chinese authorities. EC Commissioner, Sir Leon Brittan, raised issue of discrimination with visiting Chinese Trade Minister at the end of last month. There has been no public repetition of threats of discrimination since the opening of talks with the Chinese on the 1994/95 elections.
AIR SERVICE AGREEMENTS (ASAs)
The progress on ASAs has been held up for some time over the question of rights for partners on the Hong Kong/Taiwan sector,
- a hold-up which pre-dates the announcement of the Governor's electoral proposals last October. There are currently 7 ASAS which have been initialled by Hong Kong and are awaiting clearance from the Chinese. The one that has been waiting longest, i.e. for over three years, is