TNAG-1843-FCO40-2618-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 31

prosperity of Hong Kong after 1997 that Civil Service morale remains

high. For this reason we told the Chinese side at the first meeting

of the JLG that we wanted to work for a modernised and enhanced

package of pension benefits. We wanted this to encourage civil servants to remain in place under the HK/SAR Government. We also

wanted to safeguard the pension rights of those who wished to leave

after 10 years service. The Chinese side were unconvinced at first.

But after we carefully explained to them our proposals and their implications, they eventually agreed in full to our proposals. not until the the fifth meeting of the JLG.

Air Services Agreements

But

Another very important example is the separation of Air Service

Agreements. In the Joint Declaration we secured the right for Hong Kong to negotiate and conclude air service agreements on its own behalf after 1 July 1997. We subsequently agreed with the Chinese side in the JLG that Hong Kong could conclude before 1997 separate Air Services Agreements with third countries; and that these would

be in a form which can continue after 1997. As a major economic, financial and trading centre, it is important for Hong Kong's future prosperity that it has a civil aviation industry which is able to respond rapidly to the developing needs of the economy and to

changes in the worldwide, aviation industry. Four ASAS have been signed to date, with the Netherlands, Canada, Switzerland and

Brunei. Each of these agreements has involved complex and detailed

negotiations. Much still remains to be done. A further 20 British

Air Service Agreements contain routes which include Hong Kong and will require separation. We will continue to press ahead with this.