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These are not on the Hong Kong-Laoag and Hong Kong-Cebu routes. included in Route II on the two Route Schedules to the ASA. Although new routes can be operated on the basis of a CMU, it is more normal to amend the ASA to give such rights binding Legal cover. We assume that, at the May 1993 talks, no amendment to the Route Schedules was contemplated because of the wording (begin quote) notwithstanding the Route Schedule to the Agreement (end quote) in paragraphs 4 and 5. But we are unaware of the reasons for this.
4. If the Philippines insistence is in relation to this, we believe that, subject to Hong Kong's views, an exchange just to amend the Route Schedules in the Air Services Agreement would be acceptable. This would however need to be in much simpler terms than the Philippines proposal, and would not refer specifically to the CMU.
5. We would be grateful, therefore, if you would explain our position to the Philippines authorities, stressing the view that a CMU is a non binding instrument designed to protect commercially sensitive matters and not, in those circumstances, appropriate to confirmation by a legally binding exchange of Notes. You should also, if it seems likely that the real reason is to provide legally binding cover for the new routes in the Route Schedules, and providing Hong Kong have no objection, float with the Philippines authorities the possibility of a simple exchange amending the ASA as a separate exercise and leaving the other provisions of the CMU signed by the delegations without further official confirmation.
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