obtain the rights from the Chinese (the Mongolians will allow our airlines to overfly their territory for a royalty and, unlike their Soviet and Chinese neighbours, are not also seeking an inter-governmental exchange of air services
rights). The UK is also seeking improved routes for the UK carrier (British Airways) under the UK/PRC arrangements. The HK-PRC route and rights for Hong Kong airlines were
settled at the last round of talks with the Chinese in March
1990, although CAAC have indicated that they would like to discuss capacity adjustments on these routes.
4. As is usual in air services negotiations, the Chinese will be looking for rights of equivalent value from the UK/HK side. We know that they wish to reopen discussion on Chinese airlines through-running Hong Kong. Hong Kong will be concerned that nothing in the talks with the Chinese
prejudices their position post-1997, or the commercial
interests of Hong Kong airlines. These sensitive and
complicated matters are the subject of discussion between
the UK and HK aeronautical authorities and David Moss, Head of International Aviation Directorate, Department of
Transport, the Leader of the UK/HK delegation at the forthcoming talks with the PRC, is meeting Mrs Chan on
4 November. In addition HKG will, of course, be part of the UK led delegation for the talks with the Chinese.
BECABQ/3
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