TNAG-2047-FCO40-2917-Visits-by-staff-of-the-Department-of-Trade-and-Industry-to-H-1990 — Page 14

HONG KONG AIR SERVICES

BACKGROUND

CONFIDENTIAL

Air Services Agreement Separation

1.

Arrangements for scheduled air services between Hong Kong and most countries are presently regulated by UK Air Services Agreements (ASAs). Air services to Hong Kong cannot of course be covered in this way post-1997 and, with

Chinese consent, we are separating all those UK ASAS which

provide for routes to Hong Kong into two sets of

arrangements: one between the UK and a third country and one

between Hong Kong and a third country (Hong Kong ASAs) which

can continue in force beyond 1997. To ensure this, we show

the initialled texts to the Chinese for approval before

signature.

2.

We are becoming increasingly concerned at the length of

time the Chinese are taking to agree these draft texts.

They are currently sitting on six draft ASAS (New Zealand,

Brazil, Malaysia, Sri Lanka, India, FRG): the Hong Kong/New

Zealand text was handed over to them nearly eighteen months

ago. We are continuing to negotiate separated Hong Kong

ASAS with third countries. The backlog is likely to

increase.

We

3. CAAC, the Chinese airline, is thought to be behind these

delays: they are obstructing the separation process in an

attempt to gain a larger slice of the action after 1997.

have remonstrated with the Chinese over these delays both at

JLG XVI and in other meetings between the JLG offices.

Mr McLaren raised the issue with the Chinese ambassador on

18 June, Mr Maude raised it in Peking and the Secretary of

State raised it with his Chinese counterpart at UNGA in

September.

CAMAAL/1

CONFIDENTIAL