TNAG-2312-FCO40-3356-Air-services-between-Hong-Kong-and-South-Korea-1991 — Page 16

14 October 1991

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hec 181/23

Foreign & Commonwealth

Office

file 15/10 (24)

Martin Glass Esq

IAD

Department of Transport

2 Marsham Street

London

Dear Martic

HONG KONG/KOREA AIR SERVICES AGREEMENT

London SWŁA RAHI

Telephone: 071-

1. Thank you for your fax of 11 October in which you invited my comments on a Far Eastern Economic Review article about Sino-South Korean relations, and in particular the implications of their developments in the negotiation of an Hong Kong/South Korean ASA. I enclose a minute that I commissioned from Ian Davies in FED setting out the current state of PRC/ROK relations.

2.

I am afraid that we think you a little over optimistic in saying that there will be no grounds for further delaying ASA separation negotiations with the South Koreans. It is by no means clear yet if, or, more likely, when the PRC will establish diplomatic relations with South Korea. The South Koreans themselves are clearly keen on this, but in the past have proved to be wildly over optimistic. North Korea remains of great ideological importance to China, particularly the hardliners, even if the South Korean economic strength seems tempting.

3. There is unlikely to be substantive movement on this before the beginning of next year. In any case, we have quite sufficient problems with the Chinese over ASA separation without introducing the further complication of a HK/ROK ASA at this stage. We should therefore wait until at least the end of the first half of next year before leaping into ASA separation negotiations with the South Koreans.

Your Guer

S Riordan

Shen

Hong Kong Department

cc: Mr I Davies, FED WH 233

TOCACA

CC

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