CONFIDENTIAL

Line to take

6

Although British Airways have no immediate plans to operate to Peking,

the Chinese remarks at the informal meeting during the ICAO Conference in

Montreal could indicate that the previous hard line taken by Peking has

changed. It would be of benefit to obtain ratification of the Air Services

Agreement in readiness for the time that British Airways want to start services;

moreover failure on our part to mention the subject could be taken as indicating

that we have no interest in the matter. thus it would be helpful for the

Minister to touch on the issue by enquiring of the Vice Minister whether the

Chinese Government's position concerning the ratification has changed since

March 1976.

3

CONFIDENTIAL

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