CONFIDENTIAL
We understand that the Australians are also approaching Hong Kong to discuss this question. We would be grateful to know from ASNU if any different thoughts emerge there.
4.
Yous ever and
RAJ Bunten
Hong Kong Dept
cc: Mr Hall, AMD
Dr Bristow-Smith, FED
M Glass Esq, ASNU, ESB Hong Kong
}
w/o enclatue.
CONFIDENTIAL
FROM DFAT AND DOTAC
MENOJUI
PAGE.ØDE
AS YOU ARE AWARE AIR SERVICES CONSULTATIONS WITH OFFICIALS OF THE
PEOPLE'S REPUBLIC OF CHINA WERE HELD IN CANBERRA BETWEEN 9-11
AUGUST. THE CHINESE DELEGATION WAS LED BY QIAN ZEMIN, DEPUTY
DIRECTOR, INTERNATIONAL AFFAIRS DEPARTMENT, GENERAL ADMINISTRATION
OF CIVIL AVIATION AND INCLUDED REPRESENTATIVES FROM AIR CHINA.
THESE WERE THE FIRST AIRLINE NEGOTIATIONS WITH THE PRC SINCE THE
ORIGINAL AGREEMENT WAS CONCLUDED IN 1984. THE CURRENT AGREEMENT
PROVIDES FOR ONE SERVICE PER WEEK BY THE CARRIERS OF EACH SIDE ON A
SINGLE ROUTE TO BEIJING.
2.
AUSTRALIA'S OBJECTIVES FOR THE TALKS INCLUDED AN INCREASE IN
THE NUMBER OF CARRIERS OPERATING ON THE ROUTE, INCREASED CAPACITY,
INCREASED POINTS OF ACCESS AND AGREEMENT ON SEVERAL TECHNICAL AND
AIR SAFETY ISSUES.
3. IN COMPLEX NEGOTIATIONS WE MANAGED TO IDENTIFY AREAS WHERE THE
EXISTING AGREEMENT COULD BE EXPANDED. DESPITE THE NUMBER AND
COMPLEXITY OF THE ISSUES INVOLVED GOOD PROGRESS WAS MADE ON MOST
ISSUES.
BUT AN AGREEMENT WAS NOT POSSIBLE AT THIS ROUND OF TALKS OWING
TO THE INABILITY TO AGREE MUTUALLY ON A FORMULA FOR ROUTE SCHEDULES.
A KEY ISSUE WAS THE STATUS OF HONG KONG AFTER 1997 UNDER THE TERMS
4.
OF THE AUSTRALIA/CHINA AIR SERVICES AGREEMENT. THIS ISSUE HAD ALSO
LDM
'BEEN A FOINT OF CONTEN
AGREEMENT IN 1984. THE STATUS OF HONG KONG AROSE DIRECTLY FROM A
CHINESE REQUEST THAT ITS ROUTES BE DESCRIBED AS INCLUDING ALL POINTS
IN CHINA. THIS WOULD BE A DEPARTURE FROM THE PRESENT ARRANGEMENTS
WHERE POINTS AVAILABLE IN BOTH COUNTRIES ARE SPECIFIED FOR BOTH
SIDES. ACCEPTING THIS PROPOSAL WOULD HAVE MEANT THAT CHINA WOULD,
IN PRINCIFLE, BE ABLE TO USE HONG KONG AS A POINT IN CHINA AFTER
1997. BUT THE SAME RIGHT WOULD NOT BE AVAILABLE TO AUSTRALIAN
ONTENTION DURING NEGOTIATIONS FOR THE ORIGINAL.
CARRIERS.
IF
AUSTRALIA INDICATED THAT IT WAS PREPARED TO ACCEPT THE CHINESE
PROPOSAL IF IT EXCLUDED HONG KONG AFTER 1997 OR, ALTERNATIVELY,
5.
THIS POSITION IS
IT WERE AVAILABLE FOR THE CARRIERS OF BOTH SIDES.
ESSENTIAL IF THE INTERESTS OF AUSTRALIAN CARRIERS ARE TO BE
PROTECTED AFTER 1997. FOR THE AUSTRALIAN SIDE THIS IS MERELY AN
ISSUE OVER THE VALUE OF THE RIGHTS BEING TRADED BY BOTH SIDES.
6.
INITIALLY, QIAN SEEMED PREPARED TO ACCEPT AN AUSTRALIAN
CONSTRUCTION THAT WOULD HAVE EXCLUDED HONG KONG FOR BOTH SIDES, BUT
CHANGED HIS MIND AFTER DISCUSSION WITH THE PRC EMBASSY ON THE THIRD
DAY OF THE TALKS. AS BOTH SIDES ARE WILLING TO EXPAND THE NUMBER OF
TRAFFIC POINTS AVAILABLE TO EACH SIDE, THE SOLUTION WOULD SEEM TO
LIE IN EXPANDING THE POINTS CURRENTLY SPECIFIED IN THE AGREEMENT,
ALTHOUGH THIS IS LIKELY TO REMAIN A DIFFICULT ISSUE BECAUSE OF THE
DIFFERENT PRIORITIES SET BY BOTH SIDES. PRELIMINARY DISCUSSION
DURING THE NEGOTIATIONS FAILED TO RESOLVE THE ISSUE.
7. WHILE THIS ISSUE IS LARGELY A TECHNICAL AVIATION MATTER, AND NOT
UNCOMMON
LIN
THIESE
"IPES OF MECOT
TONS,
IT DOES HIGHLIGHT HOW
SENSITIVE THE HONG KONG SOVEREIGNTY ISSUE IS FOR THE PRC.
AS YOU
ARE AWARE, DECISIONS AFFECTING HONG KONG ARE MADE AT THE HIGHEST
i
: