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which we were always ready to discuss. He believed that there were perhaps many advantages for China in regular services between the two countries and not only in local flights to Hong Kong, especially now that China was expanding her tourist industry. But there were difficulties for the UK Government in accepting the additional terms proposed by the Chinese. If the Chinese side had any new suggestions to make we would be happy to resume dis- cussions. On our side we were still taking a close look at the Shipping Agreement. All such agreements as these would require study by both sides but if some could be signed they would perhaps be useful in formalising relations. Mr Sung asked whether
Mr Cortazzi had meant that a special Air Services Agreement relating to flights between Hong Kong and various points in China should be negotiated prior to the signature of a full agreement. This was not what Mr Cortazzi meant. He thought there would be benefits for both sides if the existing agreement perhaps including the possi- bility of flights between Hong Kong and China were brought into operation. Our position had not changed since Hr Rogers spoke to the Chinese Commercial Counsellor in London. Mr Sung said that during M. Barre's visit to China a Science and Technology Agreement had been signed and that if we were to raise formally the possi- bility of a UK-China Agreement the Chinese would be more than happy to consider it. This applied also to a possible cultural agreement. He understood that the difficulties with the Air Services Agreement involved the parking of Chinese and the Chiang Clique aircraft together at Kai Tak airport. If it were a private airline operating from Taiwan there would be no problem but because of its pretensions to being a "national" airline it could not be accepted. The question of the Air Services Agreement was under consideration by the Chinese and we would be hearing later. On the Shipping Agreement Mr Sung foresaw no great problems.
9. Mr Cortazzi was grateful for the very frank and friendly dis- cussion that he had had with Mr Sung and mentioned the large number of people who on hearing that he was travelling to China, had asked that their regards be passed to Mr Sung. Many hoped to see Mr Sung in Britain again, perhaps accompanying a senior Minister. Mr Sung asked Mir Cortazzi to return the good wishes of his friends and said he hoped also to be paying another visit to Britain at some stage but thought it was unlikely that he would be accompanying Mr Huang Hua who is proposing to travel before July this year.
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40FT DENTAL UK EYES A