TNAG-2836-FCO40-4089-Air-Service-Agreements-between-Hong-Kong-and-South-Korea-1993 — Page 48

IX of Annex I

I to the Joint Declaration. To this end, each

initialled text is shown to the Chinese before it is signed.

However, the text of any associated confidential document is not

shown to the PRC.

7. It is important to Hong Kong to have its own separate ASAS. But it is also very much in the interests of the Republic of Korea - as it is for Hong Kong's other aviation partners since such ASAS will provide a greater degree of certainty about the

continuation of scheduled services post 30 June 1997. For

example, unless the Republic of Korea has a separate ASA with

Hong Kong, its existing air services rights to and via Hong Kong will lapse on 30 June 1997. Thereafter any new arrangements will

have to be negotiated ab initio either with Hong Kong acting under specific authorisation from the Chinese Government or with

the latter for routes which include other points in the PRC.

8.

The successful negotiation and conclusion of a Hong Kong/Republic of Korea ASA would, therefore, permit longer-term

planning by the airlines on both sides and would ensure the

continuation of commercial and economic benefits to both the

Republic of Korea and Hong Kong. This would not, of course,

preclude any subsequent changes to the ASA or to an associated

confidential document. The Hong Kong Special Administrative Region Government will, after 30 June 1997, need specific

authorisation from the Chinese Government to renew or amend its

ASAS (but not, however, merely to permit them to run on).

Up to

that date, the Hong Kong Government will require an authorisation

from the UK Government to amend any of its ASAS. But where both

parties to the ASA wish for a balanced adjustment in rights contained in a CMU, it would be possible for them to negotiate such changes before or after 1997 without reference to either the

UK or the PRC.

9.

The United Kingdom will be pleased to have the Republic of

Korea's reaction to its proposal that a separated Hong Kong/Republic of Korea ASA should be negotiated.

January 1993