TNAG-2894-FCO40-4167-Hong-Kong-localisation-of-laws-carriage-of-goods-by-air-1994 — Page 5

CONFIDENTIAL

XCC(94)6

(b)

there is a general perception that civil aviation is a sensitive area touching upon important national interests including defence and foreign relations; and

(c) there are specific concerns that appropriate powers

should remain with the central government.

In signifying agreement both at the expert talks and subsequent JLG meeting, the Chinese insisted that points of principle raised by them - in relation to the importance of localised civil aviation legislation reflecting Hong Kong's non-sovereign status and the need for convergence with the Basic Law - be placed on the record.

15

At the end of the recent expert talks, the Chinese side indicated some interest in moving on with the study of the second stage bill. We will hand over a consultation paper on that as soon as possible. The second stage bill will deal with the more complex and sensitive provisions in the 1969 Order, such as the implementation of the Chicago Convention, nationality markings, registration of aircraft and control of civil aviation in time of war or emergency. The process of consultation is therefore likely, once again, to be protracted.

FINANCIAL AND STAFFING IMPLICATIONS

16

There are no financial or staffing implications.

PUBLIC CONSULTATION

17

Hong Kong based airlines were consulted when amendments to the Regulations were planned but since the first stage Civil Aviation Bill merely localised UK legislation currently applied to Hong Kong, public consultation is not considered necessary.

PUBLIC REACTION

18

The public are unlikely to be interested in this Bill but may be interested in the reasons why the localisation of civil aviation legislation has taken so long.