TNAG-1392-FCO40-1864-Future-of-Hong-Kong-briefing-for-meetings-and-visits-1985 — Page 5

CONFIDENTIAL

BRIEF NO B2 #KK

040/15.

PRIME MINISTER'S VISIT TO NEW YORK, 23-24 OCTOBER 1985

BILATERAL MEETING WITH ZHAO ZIYANG

II) HONG KONG

Our Objectives

THIS IS A COPY THE ORIGINAL HAS BEEN CLOSED FOR

нак RECEIVED IN REGISTRY

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10/15

¡ 8 OCT 1985

DESK OF FCI

GATT

40 YEARS UNDER FOI EXEMPTION NO....27(1)....

INDEX

PA

a) To convince the Chinese of the importance of early agreement on how to secure Hong Kong's continued participation in the GATT.

AIR SERVICES

b) To stress to the Chinese our hope that the next round of air service talks will produce an agreement allowing an increased role for Hong Kong based airlines, particularly Cathay Pacific Airways, on routes from Hong Kong to China, particularly Peking and Shanghai.

Arguments to Use

a)

Glad Joint Liaison Group and Land Commission got off to good

start.

b) GATT and air services first important Hong Kong subjects to be

discussed with Chinese since ratification of Joint Declaration.

Outcome of discussions will be seen as test of whether Chinese and

British sides can cooperate over Hong Kong.

c) Expectations of an early solution on the question of Hong Kong's continued participation in the GATT have been aroused in Hong Kong by the terms of the Joint Declaration. Failure to settle question soon would have an adverse effect on businessmen's appraisal of Hong

Kong's prospects of continuing commercial autonomy and on their

investment decisions. Believe we have put forward solution which

would best ensure business confidence.

d)

Agreement was reached during session of air service talks in

Peking this September that more services necessary between Hong

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CONFIDENTIAL

/Kong

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