TNAG-1715-FCO40-2395-Hong-Kong-leading-personality-Sir-Yue-Kong-Pao--businessman-1988 — Page 32

BACKGROUND

BASIC LAW

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1. Sir Y K Pao is one of eight Vice Chairmen of the Basic Law

Drafting Committee, although he does not appear to have played a

very active part in the drafting process.

DRAGONAIR

2.

Dragonair is a British airline incorporated in Hong Kong in 1984. Sir Y K and companies under his control hold about 35% of

total shareholding. Following its designation under the UK-Thailand

ASA of October 1986, Dragonair now serves Thailand on regular basis

and operates non scheduled services to a growing number of other regional destinations. Dragonair has ambitions to expand both its

scheduled and non-scheduled services. The airline has been licensed

for scheduled services to certain points in Japan, but the rights have not yet been negotiated under the ASA.

3.

We hope to resume governmental talks with Chinese in September

or October on scheduled services to the PRC, but dates have not yet been agreed. One of our objectives is to secure rights for

Dragonair to operate scheduled services to 5 points on the Chinese mainland other than Peking and Shanghai (already served by Cathay Pacific). The Air Transport Licensing Authority in Hong Kong recently granted licenses for Dragonair to serve Peking and

Shanghai. It is for the HKG to decide whether they wish HMG to seek

traffic rights, in the light of Cathay Pacific's (CPA) existing

services to these points. HKG policy is generally only one carrier per point.

Aganist confetite

NINGBO UNIVERSITY

4. Sir Y K Pao paid for the construction of a new university at Ningbo, his place of birth. There are now 2,000 students already

studying there and further expansion is underway. Sir Y K Pao has

proposed that the Ningbo University library (to be completed in

1990) should be named after the Prime Minister. He has also made it

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