NEGOTIATORS from Hong Kong and Australia expect another round of talks on air services within the next two months after the latest meetings held last week failed to settle 'anything concrete'. The negotiators are trying to work out a new air-services agreement, after conflict threatened to halt flights altogether. However, a truce was declared in June. The talks, held in Canberra last Wednesday, were due to have run to last Friday, but wrapped up on Thursday, spokesman for the Economic Service Branch, Phylomena Fung Tam Lap-chun, said. She would not comment on whether any progress was made. But Cathay Pacific Airways corporate communications manager Kwan Chuk-fai said the negotiators had not yet found a compromise. 'From what they told us there has not been anything concrete but there was some progress,' Mr Kwan said. 'They expect another round of talks in one or two months' time.' Ms Fung said that while the next round had not yet been scheduled 'we always keep our contact, and we can talk any time'. The territory was demanding a formal cap be imposed on the number of passengers Qantas Airways could pick up from Hong Kong and carry onward to Singapore and Bangkok. On June 26, after a 10-hour meeting, the two sides narrowly averted a potentially crippling air war by agreeing to a complete overhaul of their existing aviation relationship. They also promised to conduct a comprehensive review of the existing Confidential Memorandum of Understanding and draw up a new agreement by January 1. The dispute centred around claims by Cathay that Qantas was contravening the terms of the existing agreement on the number of passengers it could pick up in the territory and take to Bangkok and Singapore - its so-called fifth-freedom flights. Cathay claimed Qantas was picking up 85 per cent of its passengers in Hong Kong, which it argued was well above the agreed 50 per cent. After negotiations failed in April, Hong Kong said it would limit as of July 1 the number of passengers Qantas could pick up to 50 per cent of the total number aboard each flight. Canberra retaliated, saying it would not renew Cathay's landing rights after June 30 and later threatening to cut by about 60 per cent the number of passengers Cathay could fly to and from Sydney.