BACKGROUND
1.
Arrangements for scheduled air services between Hong Kong and Japan are presently regulated by the UK/Japan Air Services Agreement (ASA). Air services to Hong Kong cannot be covered in this way of course post-1977 and, with Chinese consent, we are
separating all those UK ASAs which provide for routes to Hong Kong into two sets of arrangements. On the basis that we have established these Hong Kong ASAs by 1997, and that the ASAS will continue in force beyond that date, we agreed with the Chinese under the Joint Declaration that Hong Kong should have autonomy in air services matters allowing them to amend their ASAS and negotiate new ASAS (other than those involving routes to other points in mainland China).
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2. The Japanese Ministry of Foreign Affairs was provided with a draft Hong Kong/Japan ASA text in August 1987. Exchanges about the separation process and the draft ASA have since taken place
T by correspondence and informal talks. There are no differences of principle or substance and we believe the few legal
with the ASA text difficulties the Japanese have
are not
insurmountable. We have been pressing the Japanese for over a year to meet us formally. They have suggested further progress should not be attempted until after the Japanese general elections. We have argued these are not grounds for delay and stressed the importance of such an important partner of Hong Kong's as Japan signing a separate ASA, thereby demonstrating lief in Hong its support for the Joint Declaration and its belief
been There have Kong's future stability and prosperity. indications lately, at senior official level, that the MFA is now
rady meet us. [Dates have been fixed for
3.
i
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Japanese concerns regarding separation have focused on the implications of their
with the own air services relations with Chinese. They have been assured that the ASA separation process has the consent of the Chinese and is in accordance with the Joint Declaration. The Japanese have also been advised that the initialled ASA text (but not the confidential side documents detailing the frequency, capacity and routeing rights for air
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