TNAG-1632-FCO40-2248-Ministerial-visits-from-the-UK-to-Hong-Kong--including-visit-1987 — Page 96

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(Imbalance between British and Hong Kong airlines on London/Hong Kong route?)

5.

In the

Understand this is a sensitive issue for Hong Kong. overall arrangements for the route we try to reach proper accommodation of all the interests involved on British and Hong Kong

sides.

(Implications of proposed BA/BCal merger?)

6.

Still before Monopolies and Mergers Commission.

Cannot

comment further at this stage.

(Separate Hong Kong ASAS?)

7.

Separation an important process.

Will ensure continuity

Confident we

across 1997. A major task, but we are working hard. will complete necessary work in good time.

(Separation going slowly/encountering difficulties?)

8.

Naturally takes some time to establish pattern and procedures for separation. But we are working steadily: engaged in discussion with several partners. [Cannot specify confidential].

(UK extracting advantage from separation process?)

9.

Not at all. HMG's only objective is to place Hong Kong in sound position to benefit from civil aviation provisions in Joint

Declaration.

(Future of Kai Tak Airport? Your attitude to Gordon Wu's plan to build new airport and extend Harbour terminals?)

10.

Matters for HKG. Understand they are examining consortium's

Future of plans in light of wider development plans for territory. Kai Tak also under review by HKG. Obviously wrong for me to venture opinion on these internal issues at this stage.

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