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Hong Kong/Australia air services negotiation

After a day of intensive discussions between senior officials of the Australian Department of Transport and Hong Kong Government's Economic Services Branch, the Australian and Hong Kong Governments have agreed to undertake a review of all air services arrangements under the Hong Kong/Australia Air Services Agreement with a view to negotiating a new Confidential Memorandum of Understanding (CMU) by January 1, 1996 at the latest.

"Despite intensive efforts by both sides to find a solution to the problems which have arisen as a result of Qantas' fifth freedom services, fundamental differences remain between the two sides," a Hong Kong Government spokesman said today (Monday).

"However, in the interest of avoiding massive disruption to air services between Hong Kong and Australia, both sides have agreed to withdraw their respective conditions in the permits issued to the designated airlines of each side, pending completion of the re-negotiation of the CMU.

"It was also decided that no new conditions would be imposed by the aeronautical authorities of either side before January 1, 1996.

"The problems are still there and must be resolved. In particular, the Hong Kong Government's position on Qantas' fifth freedom activities remains unchanged," the spokesman said.

"The purpose of the forthcoming review of air services arrangements is to clear away once and for all the outstanding areas of disagreement and remove uncertainties for the travelling public.

first."

"But both governments felt that the interests of the travelling public must come

End/Monday, June 26, 1995

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