TNAG-2310-FCO40-3350-Air-services-between-Hong-Kong-and-China-1991 — Page 12

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LORD CAITHNESS' LUNCH WITH SIR ADRIAN SWIRE, 24 OCTOBER

Hong Kong ASAS

Hhrc 131/6

Points to Make

- As Sir Adrian is aware, the problems in clearing Hong Kong ASAS with the Chinese have now centred on the question of

third world country airlines using Taiwan as an intermediary

or beyond point for their services to Hong Kong. At JLGXX,

held in London on 24-26 September, the Chinese set out their

position of principle on Taiwan. This is clearly an issue

of great sensitivity in Peking, although doubtless CAAC are using this for their own purposes. It remains to be seen what, if any, practical proposals the Chinese will put

forward now that their position of principle is on the

table.

- In arguing our case to the Chinese, it is important to get

across the extent of the economic/investment implications,

and the real dangers for Hong Kong's continued role as a

centre of international and regional aviation if the uncertainty on this issue continues. Grateful for anything

Sir Adrian Swire feels he could do to this end.

-

(Defensive)

-

Unfortunately, cannot go into detail on what the Chinese

said at JLGXX discussions in JLG are confidential, and the

Chinese presentation on this subject was of a both highly

political and technical nature. Know Sir Adrian will

understand.

TOCACR/1

JRB

CONFIDENTIAL