TNAG-1392-FCO40-1864-Future-of-Hong-Kong-briefing-for-meetings-and-visits-1985 — Page 8

Air Services

CONFIDENTIAL

At first round of talks in Peking both sides agreed need for

additional capacity on Hong Kong/China routes, particularly Peking

route. Hope to persuade Chinese to allow Cathay Pacific Airways

(CPA) to operate scheduled services to Peking and Shanghai and would like to leave scope for other Hong Kong based airlines to operate

routes to other Chinese cities. Chinese seem against idea of more

than one Hong Kong based airline operating into China or to any Hong

Kong based airline operating to destinations other than Peking and

Shanghai. We are optimistic Chinese will accept CPA on the route to Peking. Hong Kong opinion concerned at the failure to reach agreement at the last round. Important that details are agreed at

the next round.

Representational Government

First indirect elections to Legislative Council held on 26 September

1985 when 24 members out of a new Council of 56 were chosen.

Elections went off well. Representatives chosen were well known and experienced in community affairs. Encouraging interest shown in the election by both the public and media. Review of system to be made

in 1987 before next elections due in 1988. Although Chinese have

been careful not to comment directly on the elections they remain

suspicious of British motives over constitutional reform, tending to

see the development of local political institutions as a nattempt by us to carry Hong Kong towards a more independent status than they are prepared to contemplate. In June Foreign Minister Wu Xueqian expressed concern about the pace of change to Sir Geoffrey Howe. Similar messages have been received through unofficial channels.

Garrison

An

The Hong Kong garrison was increased from 4 to 5 battalions in 1980. to help control a surge in illegal immigration at the time.

extra Gurkha battalion was raised specifically for the task. Now

that the illegal immigration situation is no longer cause for concern, it was announced on 27 September that the garrison would be

i18aae

CONFIDENTIAL

/reduced