TNAG-2527-FCO40-3696-Hong-Kong-China-Relations-Committee-1992 — Page 154

CONFIDENTIAL

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(a)

Airport

diversion of traffic through Shenzhen

could reduce HDA's chances of obtaining approvals

to open new routes and gain additional capacity on

existing routes.

If access to Shenzhen Airport

becomes more established, it will encourage PRC

airlines to open new services to Shenzhen rather

than increasing frequencies into Hong Kong. This

will undermine the effectiveness of our strategy

of making further expansion of capacity on

existing routes and the opening of new routes for

PRC airlines contingent on HDA gaining reciprocal

increase in capacity on existing routes and access

to the new points it wishes to serve;

(b) if a direct bus link between Shenzhen and Kai Tak

airports is proven to be convenient, coupled

together with special immigration and customs

arrangements, the price sensitive segment of the

China bound market in Hong Kong could be attracted

direct to Shenzhen.

8.

While

some form of

HDA have

verbally indicated their acceptance of

transport links between Hong Kong and Shenzhen

Airport, they have asked that any proposed bus service should

originate/terminate at Kai Tak but somewhere in town (thus

not

making it less user-friendly).

Recent Developments on Transport Links

(a) Sea Links

9.

A

construction

four-berth

passenger ferry terminal is under

to the north of Shenzhen Airport specifically to

provide a link between the airport and the nearby areas of

Macau, Shenzhen and Hong Kong. The terminal is about 37

nautical miles from Tsim Sha Tsui and depending on the ferry

type, the journey time

might take between 2 1/2 hours (for

CONFIDENTIAL