14 June 1989]
THE FOREIGN AFFAIRS COMMITTEE
AIR SERVICES (HK106)
345
[Continued
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Supplementary Memorandum submitted by the Foreign and Commonwealth Office
1. In recent years, Hong Kong's air transport industry has developed at a rapid rate as Hong Kong's economy has flourished, and as Hong Kong's role in the region has developed. It is most important therefore that Hong Kong, as a major economic, financial, tourism and trading centre, continues to have an air transport industry which is able to respond rapidly to the developing needs of the economy and to changes in the worldwide aviation industry.
2. For those reasons, the Government secured the inclusion in the Joint Declaration both of recog- nition that the Hong Kong SAR should be maintained as an international and regional aviation centre and of detailed provisions on air services. The relevant provisions are set out in Section IX of Annex I to the Joint Declaration. These provisions have been reflected in Articles 127-134 of the draft Basic Law.
3. The Joint Declaration provides that the Chinese authorities will be responsible for air services between Hong Kong and the rest of China, and for negotiating ASAs providing for any services from China via Hong Kong to third points or vise versa, or between Hong Kong and other countries which have stops in the Chinese mainland. The Joint Declaration also provides that, in negotiating such ASAs, the Central People's Government shall take account of Hong Kong's special conditions and economic interests, and that Hong Kong representatives may participate in Chinese delegations in air services consultations.
4. For negotiations in cases where services to points in the Chinese mainland are not included, the SAR Government may, acting under specific authorisations:
(a) renew or amend existing ASAs or arrangements;
(b) negotiate and conclude new ASAs providing routes for Hong Kong airlines; and
(c) negotiate and conclude provisional arrangements with a foreign state or other region where no
existing ASA is in force.
5. Building on the arrangements in the Joint Declaration, the Government subsequently agreed with the Chinese side in the Joint Liaison Group (JLG) arrangements whereby Hong Kong could conclude before 1997 separate ASAs with third countries where services to Hong Kong are covered by existing agreements with the UK. These arrangements also provide for the Chinese to be shown a copy of the initialled text of each ASA before signature, in order to ensure that it is in a form capable of continuing after 1997.
6. At the time of signature of the Joint Declaration, Hong Kong was specifically included in ASAs between the UK and 24 other countries. It is intended that Hong Kong will sign its own ASAs before 1997 with those countries where services still operate and, as each ASA is signed, the provisions relating to Hong Kong will be deleted from the relevant UK ASA. This is referred to as the process of separation.
7. The Department of Transport, together with the Economic Services Branch of the Hong Kong Government, has embarked upon a programme of negotiating separate Hong Kong ASAs with the relevant countries. So far, three separated ASAs have been signed, with the Netherlands, Canada and Switzerland. The Dutch and Canadian ASAs came into force upon signature, whereas the Swiss ASA will enter into force upon the completion of Swiss constitutional procedures. Negotiations with several other partners are nearing completion and further ASAs are likely to be signed later this year.
8. Agreement has also been reached in the JLG on arrangements whereby Hong Kong should sign its own ASAs with countries whose aviation relations with Hong Kong are not covered by existing ASAs. Several countries have expressed interest in negotiating such ASAs with Hong Kong. This is not part of the process of "separation" as described above. One such "new" ASA was signed with Brunei in January this year, and negotiations for others are in prospect. Again, on completion of negotiations, a copy of the initialled texts of such ASAs are shown to the Chinese in order to ensure that they are in a form capable of continuing after 1997.
9. The most complex area of air services to be tackled, both now and with a view to preserving Hong Kong's autonomy beyond 1997, is the UK/Hong Kong/PRC relationship. It is not possible for Hong Kong's civil aviation relationship with the UK before 1997 to be governed by a straightforward “separated” ASA, since a treaty cannot be concluded between two parts of the same state. Similar
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