TNAG-2837-FCO40-4090-Air-services-agreement-between-Hong-Kong-and-Thailand-1993 — Page 46

OVERMENT HOUSE HONG KONG.

FRI 09 JUL 93 09:49

CONFIDENTIAL

2

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PG.03

JLG

increased generally, longer delays might be expected. If we could avoid becoming caught up in such delays, we should. We were also hoping to complete the ASA separation programme before focusing in earnest on the conclusion of ASAS with the 16 or so partners with whom we were in the process of establishing new aviation links. So we aimed to have all separated ASAS signed by the end of 1995 at the latest.

I pointed out that there were two aspects of the Hong Kong/Thailand ASA that might require more detailed consideration by the Chinese side: the absence of an arbitration article, and the provision for services by the designated airlines of Thailand between Hong Kong and Taiwan. All Hong

Hong Kong ASAS that had been cleared so far contained arbitration articles, and although we did not foresee any problem, the Chinese side might nevertheless wish to discuss that particular · point with us.

The Sino-British Joint Declaration on the Question of Hong Kong provided that all scheduled air services to, from or through the Hong Kong Special Administrative Region which do not operate to, from or through the mainland of China shall be regulated by Hong Kong ASAS. A number of ASAs providing for services to Taiwan like those operated by Thai Airways International (TAI) had therefore already been concluded. But, as was well known, air services to Taiwan were nevertheless a sensitive issue for the Chinese side, who therefore, had required more detailed internal clearance procedures for those ASAS that provided for such services.

You mentioned that the ASA Committee of the Ministry of Transport and Communications had taken the view in the past that it would not be appropriate to complete the ASA separation process with Hong Kong until certain trunk route issues had been resolved with the UK. I said that while I could understand your authorities' wish to remove the current restriction on TAI's operations to the UK, I doubted whether the Hong Kong/Thailand ASA would be an effective lever in

your negotiations on that with the UK. Although overall responsibility for conducting the ASA separation programme lay with the UK, in the end it would have relatively little to lose from a delay in concluding the Hong Kong/Thailand ASA. The main loss would be felt instead by Hong Kong and Thailand as the two parties to the ASA, and by our respective airlines. As longstanding and close regional aviation partners, that was something that I thought we would each want to avoid.

I proposed, therefore, that we should confirm the ASA text as soon as possible to enable it to be handed to the Chinese side in the JLG.