CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 771
OF 1709OOZ MAY 93
INFO PRIORITY DTP, NEW DELHI
CONFIDENTIAL
HKCC 181/13
71
pa
3
061776
MDLIAN 3352
DTP (FOR IAD).
OUR TELNO 01: HONG KONG/INDIA AIR SERVICES.
SUMMARY.
1.
NO AGREEMENT REACHED WITH THE INDIANS REGARDING ADDITIONAL CAPACITY BETWEEN HONG KONG AND DELHI. AS ANTICIPATED, THE INDIANS ALSO RAISED QUESTIONS ON THE DESIGNATION CRITERIA CONTAINED WITHIN ARTICLES 4 AND 5 OF THE INITIALLED HONG KONG/INDIAN ASA
TEXT.
DETAIL.
2.
TALKS WITH THE INDIANS HELD AS SCHEDULED IN NEW DELHI ON 4 AND 5 MAY. ON DAY ONE, THE INDIANS BEGAN BY ASKING FOR DETAILS OF CPA'S OWNERSHIP AND IN PARTICULAR WHETHER THERE WAS ANY CHINESE PARTICIPATION. THEY APPEARED UNABLE TO STATE PRECISELY WHAT THE PROBLEMS WAS BUT INDICATED THAT THEIR CONSTITUTIONAL AUTHORITIES HAD YET TO APPROVE THE ASA TEXT INITIALLED IN 1989 BECAUSE OF THE QUOTE UNEQUAL UNQUOTE DESIGNATION CRITERIA ADOPTED FOR EACH SIDE. THEY CLAIMED THAT THEIR QUOTE HIGHER UNQUOTE AUTHORITIES MAY NOT ACCEPT THE CRITERIA AS IT STANDS IN THE INITIALLED DRAFT. WE INSISTED THAT THIS ISSUE HAD ALREADY BEEN THOROUGHLY DISCUSSED AND AGREED BY BOTH SIDES PRIOR TO INITIALLING OF THE ASA TEXT IN 1989. TO CATER FOR THE INDIAN SIDE'S CONCERN, A SEPARATE PARAGRAPH HAD ALSO BEEN INCLUDED IN THE HONG KONG/INDIA CMU OF 15 DECEMBER 1989 TO ELABORATE ON HONG KONG'S POLICY ON DESIGNATION OF AIRLINES. THE INDIAN SIDE APPEARED TO BE ENTIRELY UNAWARE OF THE PREVIOUS DISCUSSIONS ON THIS MATTER AND DID NOT RESPOND TO OUR ARGUMENTS. (NONE OF THE MEMBERS OF THE CURRENT INDIAN DELEGATION SEEM TO HAVE PARTICIPATED IN EARLIER NEGOTIATIONS OF THE SEPARATED HONG KONG/INDIA ASA). INSTEAD THEY PROPOSED THAT SUBSTANTIAL OWNERSHIP AND EFFECTIVE CONTROL OF THE DESIGNATED AIRLINE OF HONG KONG BE VESTED IN THE GOVERNMENT OF UK UNTIL 30 JUNE 1997 AND, THEREAFTER, IN THE GOVERNMENT OF PRC. THIS OF
1
PAGE
CONFIDENTIAL
No comments yet.
Private notes are available after approval.