XN000022-1982-03-19 — Page 6

FRIDAY, MARCH 19, 1982

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→I HAVE FROM TIME TO TIME BEEN ASKED IF THIS IS NOT A DUPLICATION OF THE WELL-ESTABLISHED EFFORTS OF THE HONG KONG TRADE DEVELOPMENT COUNCIL, WHICH ALREADY HAS SOME 20 OVERSEAS OFFICES. THE ANSWER IS THAT THE PROMOTION EFFORTS ARE AIMED AT DIFFERENT TARGETS AND REQUIRE DIFFERENT TECHNIQUES AND EXPERTISE.

+ INDUSTRIAL PROMOTION INVOLVES ATTRACTING TECHNOLOGY AND INTERESTING INDUSTRIALISTS IN THE OPPORTUNITIES HONG KONG HAS TO OFFER THEM AS A BASE. TRADE PROMOTION, ON THE OTHER HAND, IS PRODUCT-ORIENTED AND AIMED AT THE BUSINESSMEN, THE IMPORTERS, WHOLESALERS AND RETAILERS. EACH ACTIVITY REQUIRES ITS OWN SPECIAL KIND OF BACKUP RESOURCES, MR DORWARD SAID.

+SUBSTANTIAL PROGRESS HAS BEEN MADE ON A BROAD FRONT, AND A SOLID FOUNDATION IS GRADUALLY BEING LAID UPON WHICH WILL BE BUILT MANY MORE SPECIFIC ORGANISATIONS AND ACTIVITIES WHICH WILL

FACILITATE AND ACCELERATE THE PROCESS OF INDUSTRIAL DIVERSIFICATION, + MR DORWARD SAID.

UK-CHINA AIR SERVICES TALKS ***

AGREEMENT WAS REACHED BETWEEN THE UNITED KINGDOM AND CHINESE AERONAUTICAL AUTHORITIES AT THE AIR SERVICES TALKS HELD IN BEIJING RECENTLY TO ADD CAPACITY TO THE HONG KONG-SHANGHAI ROUTE, UP TO 50 PER CENT MORE IF TRAFFIC DEMAND WARRANTS.

THE TALKS WERE HELD TO REVIEW GENERALLY THE AIR SERVICES AGREEMENT REACHED BETWEEN THE TWO GOVERNMENTS IN 1979.

MR BRIAN KEEP, DIRECTOR OF CIVIL AVIATION, ATTENDED THE TALKS ON BEHALF OF THE HONG KONG GOVERNMENT.

DISCUSSIONS COVERED THE TRUNK ROUTE SERVICES BETWEEN LONDON AND BEIJING AND THE REGIONAL ROUTES BETWEEN HONG KONG AND POINTS

IN CHINA AT PRESENT OPERATED BY CAAC, CPA AND BRITISH AIRWAYS.

BOTH PARTIES WERE SATISFIED THAT CAPACITY ON THE TRUNK ROUTE WAS ADEQUATE AND WOULD BE SO FOR THE FORESEEABLE FUTURE.

PROPOSALS FOR CERTAIN POSSIBLE CHANGES WERE MADE TO THE CHINESE AUTHORITIES AT THE TALKS, INCLUDING A PROPOSAL FOR BA TO CARRY INTERNATIONAL STOP-OVER TRAFFIC FROM HONG KONG TO BEIJING AND THE DEVELOPMENT OF MORE BALANCED AIR SERVICES RELATIONS BETWEEN HONG KONG AND CHINA. HOWEVER, THE DELEGATIONS WERE NOT ABLE TO REACH ANY AGREEMENT.

A FURTHER ROUND OF DISCUSSIONS IS EXPECTED TO BE HELD IN A FEW MONTHS' TIME.

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