TNAG-1594-FCO40-2179-Honk-Kong-leading-personality-Sir-Yue-Kong-Pao--businessman-1987 — Page 69

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL

5.

The most recent plenary meeting of the BLDC, its fourth, took

place from 13-17 April in Peking. As far as we know, Sir Y K was

present. Quite a lot of progress has been made, particularly in

five Special Groups established to look at specific areas, in drawing up draft articles. We have been monitoring the process

carefully and feeding in thoughts as and how we can. So far the

drafts follow the Joint Declaration satisfactorily. But there are

difficult areas, mostly technical and legal in nature, where we may

want to bring influence to bear. Sir Y K is not, however, а

suitable channel.

6.

We understand the overall programme for the drafting of the

Basic Law to be:

(a)

1988.

(0)

(c)

Preliminary text produced by the Drafting Committee in early

Published in Hong Kong for consultation;

Revised draft Basic Law produced in late 1988-early 1989 for

submission to the Chinese National People's Congress (NPC)

Standing Committee. Draft published in Hong Kong;

BLDC will then produce a further revised draft for submission

to the NPC Standing Committee in 1990 and promulgation by the

NPC.

E. CIVIL AVIATION: DRAGONAIR

7.

DAL was incorporated in Hong Kong in September 1984,

following the initialling of the Joint Declaration which envisages

special treatment for airlines incorporated in and with their head

offices in Hong Kong. It met these criteria but not the normal

requirements in our Air Service Agreements (ASAs) that it should be

owned and controlled by HMG, HKG or British nationals. It was

originally owned and controlled by Chinese interests.

8.

In October 1985 when Sir Y K acquired an interest in DAL, a

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