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were under study but that the Chinese could not entertain He added that China was preparing a
any pre-1949 claims.
list of counter-claims.
e) Air Services
The Joint Declaration
19. The Joint Declaration provides for Hong Kong to remain a major centre of regional and international air services and for
airlines and other civil aviation businesses to continue operating.
The Hong Kong SAR will maintain its own aircraft register and
be responsible for technical management of air traffic services, the management of airports and similar matters. After 1997,
the Hong Kong SAR government will, under delegated authority from
Peking, negotiate traffic rights for Hong Kong-based airlines to
operate services between Hong Kong and foreign points and for
foreign airlines to operate services to Hong Kong. The Chinese
government, however, in consultation with the Hong Kong SAR government, will be responsible for arranging for SAR and China-
based airlines to provide services between Hong Kong and other
points in China; and for negotiating air service agreements with foreign governments where routes serve another point in China
as well as Hong Kong.
20. The Hong Kong government regard these provisions as an
adequate basis for the maintenance of satisfactory air services
to and from Hong Kong after 1997. Cathay Pacific believe they
will enable it to maintain its position as the Hong Kong flag
carrier.
Air Services Arrangements
21. The Chinese insisted there be no reference to Hong Kong in
the 1979 bilateral air services agreement. This provides for the
designated airline of each country to operate services between
London and Peking. Provision was also made in confidential memoranda
of understanding for British Airways temporarily to serve Hong
Kong on its London-Peking service (without being allowed to carry
Hong Kong-Peking traffic) and for services between Hong Kong and
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