TNAG-2850-FCO40-4103-Air-services-agreement-between-Hong-Kong-and-the-US-1993 — Page 6

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pending its signature. As you know, our practice is for all initialled Hong

Kong ASAS to be passed to the Chinese for consideration through the Joint Liaison Group. In such circumstances, the Chinese would probably take the view that the provisional application of an initialled ASA at a time when they are still considering it, is an attempt to pre-empt their scrutiny.

The above also answers Mr Whomersley's enquiry as to why the initialled HK/US ASA is not applied provisionally. Indeed it is not our usual practice to apply the ASA itself but rather the arrangements set out in the accompanying CMU.

However, we recognise that the somewhat oblqiue approach would be unnecessary if either the Memorandum were to remain confidential between the two signatories or if the detailed routeing and traffic rights were removed from the face of the separated ASA and put in a separate CMU. These questions of presentation, of course, have yet. to be discussed thoroughly with the US side. When they are, we may be able to find a more satisfactory solution and, even the Memorandum is to be published, it may be possible to find a non-precise term identifying the arrangements to be applied.

if

I attach herewith a slightly revised Memorandum of Consultations (paragraph 3 has been amended as I suggested in my earlier letter under reference and agreed by Mr Whomersley) and

draft Exchange of Notes passed to the US in 1991.

I should be grateful for any further views

from you or copy addressees.

Yours ever,

(Wilson Fung

for Secretary for Economic Services

cc AMD (Attn: Mr John Hall)

HKD (Attn: Mr Rod Bunten)

FCO, Legal Adviser (Attn: Mr Chris Whomersley)