§ Mr. Onslowasked the Secretary of State for Trade what progress is being 22W made with the implementation of the air services agreement between the United Kingdom and China; and if he will make a statement.
§ Mr. TebbitProgress has been disappointing. Discussions between the two airlines in Peking over the past several weeks have failed so far to produce agreement on the operating and commercial arrangements attaching to BA's proposed services. But I hope that the discussions will be resumed shortly and will lead to an early start to services.
Cathay Pacific Airways hopes very shortly to reach an understanding with CAAC about the commencement of scheduled air services between Hong Kong and Shanghai.