Background
UK/Hong Kong air services
1. Because of Hong Kong's present status as a Dependent Territory the UK cannot conclude an Air Services Agreement
(ASA) with Hong Kong but has negotiated an understanding which follows the format of, and will be upgraded in 1997 to, an ASA. Under these arrangements British Airways operate 17 services a week to Hong Kong and the Hong Kong carrier Cathay Pacific operates 14 passenger services to London (split equally between Heathrow and Gatwick) and 2
services to Manchester. In addition, as provided for under the arrangements, Cathay Pacific operate 3 cargo services a week to London and their fellow airline, Air Hong Kong,
operate 4 cargo services per week to Manchester.
2. The UK and HK aeronautical authorities meet annually to consider matters of mutual interest including the bilateral relationship. We agreed in September 1991 to rollover the
capacity element of the arrangements for another year and to meet again then to review the position since there are no pressing matters requiring earlier discussion.
UK/PRC air services
3.
We are about to resume air services negotiations with the Chinese (w/c 18 November in London), after an eighteen
month break when they lacked the will to meet, to discuss
rights for UK and HK airlines to utilise an overflying route between Europe and the Far East across the USSR, Mongolia and China (the trans-Asia route). Access to this route would cut flying time and thus airline costs, enabling our carriers to better compete with those airlines already able to use the routeing. We secured the necessary overflying rights from the Soviet authorities in June but must also
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