TNAG-2311-FCO40-3355-Air-services-between-Hong-Kong-and-Indonesia-1991 — Page 57

RESTRICTED

FM FCO

TO PRIORITY JAKARTA

TELNO 352

OF 15080OZ AUGUST 91

AND TO PRIORITY HONG KONG

37

RESTRICTED

HKC181/22

нис

7 AUG 1991

39

005271

MDLOAN 0755

pa.

HK/Indonesia

ASA.

148

CS

OK.

YOUR TELNO 474: UK/INDONESIA BILATERAL AGREEMENTS

2

1 WE CONFIRM THAT THE FORMULA IN PARA 8 OF YOUR U/N TEL OF 1 AUGUST IS ACCEPTABLE, AND FAR PREFERABLE TO THE US SOLUTION.

YOU SHOULD NOW INFORM THE INDONESIANS THAT THIS TEXT IS

ACCEPTABLE FOR THE DTA.

3 WE HAVE NOT YET COMPLETED CONSULTATION ON THE US SOLUTION. IF PRESSED AS TO WHETHER YOU CAN ACCEPT THIS SOLUTION, YOU SHOULD SAY THAT YOU HAVE NO INSTRUCTIONS AS YET BUT THAT THE US SOLUTION CLEARLY CAUSES US MUCH MORE DIFFICULTY THAN THE SOLUTION IN PARAGRAPH 8 OF YOUR U/N TEL OF 1 AUGUST.

4 FOR HONG KONG. AGREEMENT IN A TERRITORIAL DEFINITION FOR THE DTA DOES NOT TIE HONG KONG TO THAT FORMULA. IN PARTICULAR, THE REFERENCE TO CONTINENTAL SHELF IN THE FORMULA IN PARAGRAPH 8 OF JAKARTA'S U/N TEL OF 1 AUGUST IMPLIES THAT INDONESIA MAY RESTRICT THE RIGHT OF OVERFLIGHT OF THE CONTINENTAL SHELF AND IS LIKELY TO BE UNSUITABLE FOR AN ASA. MOREOVER THE REFERENCE TO INTERNATIONAL LAW IN A HONG KONG ASA (EVEN IF CONFINED TO THE DEFINITION OF INDONESIAN TERRITORY) MAY INSPIRE CHINESE PROBLEMS. WE WILL THEREFORE CONTINUE TO PRESS, ON A SUI GENERIS BASIS, FOR THE HONG KONG MODEL WORDING AT THE SEPTEMBER ROUND OF TALKS. BUT WE HOPE THAT AGREEMENT ON THE DTA MAY LEAD TO AN EARLY CONCLUSION OF THE ASA.

5 FOR JAKARTA. TO AVOID ANY MISUNDERSTANDING, WHATEVER THE OUTCOME OF OTHER BILATERAL AGREEMENTS AND OF THE HK/INDONESIA DISCUSSIONS, THE UK DOES NOT INTEND TO AMEND THE DEFINITION OF TERRITORY IN ITS OWN ASA WITH INDONESIA. THE ONLY CHANGES TO BE MADE RELATE TO THE REMOVAL OF HONG KONG FROM ITS SCOPE UPON SEPARATION. THESE ARE AS SET OUT IN THE DRAFT EXCHANGE OF NOTES HANDED OVER BY THE UK AT THE FIRST ROUND OF SEPARATION TALKS.

6

FOR HONG KONG. YOUR TELNO 2430 REFERS. WE UNDERSTAND THE DIFFICULTIES THAT AN EXCHANGE OF SIDE LETTERS WOULD POSE (EVEN IF IT WERE AN ACCEPTABLE SOLUTION FOR THE UK) AND WILL RESIST THAT AS NECESSARY.

CHALKER

1

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