TNAG-2231-FCO40-3203-Visits-by-David-Wilson--Governor-of-Hong-Kong--to-the-UK-and-1991 — Page 7

G.F. 82

File No.

CONFIDENTIAL

NOTE FOR FILE

Page

Governor's Visit to Australia

8 to 15 May 1991

Meeting with Mr Kim Beazley, MP, Minister for Transport and Communications

on 13 May 1991

Governor called on Mr Kim Beazley, MP, Transport and Communications on 13 May. were Mr Chris Samuel, Director Europe Mr Patrick Walters, Adviser to the The following points were raised :-

The Minister for Also present Section and Minister.

(a)

(b)

(c)

Mr Beazley

said that he had visited Hong Kong briefly and knew some Cathay Pacific staff, in particular Mr Rod Ellington.

The Governor said that he hoped it would be

possible to

agree ASA.

on

Mr

a separated Hong Beazley said that with a separated disagreement about Europe. He asked

Kong/Australia Australia had no problem agreement but

there was fifth freedom rights to about the Chinese attitude. The Governor said that the Chinese had agreed in principle to separated ASAS. We kept them informed about who we were negotiating agreements with and showed them initialed texts. It was taking about 18 months for them to comment on them, longer than we thought necessary. As regards China's interest in fifth freedom rights our position was that if they did not touch Chinese soil it was a matter for us. Mr Beazley asked whether China would regard such separated agreements as binding after 1997. The Governor said that they would although there might be

be some formal vetting at the time. He said that for our partners it made sense to agree on separated ASAS sooner rather than later.

for

The Governor asked whether privatization of QANTAS was an issue in the ASA context. Mr Beazley said that the type of agreement reached could affect the sale price at

However the timetable margins. privatizing QANTAS had been set and would not be affected by external factors. Australian

was looking for investors who took a long-term view about the airline. He wondered whether Cathay Pacific might be interested. The Governor said that the Cathay Pacific already had some very big commitments.

Government

The

CONFIDENTIAL

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