Registry No.

SECURITY CLASSIFICATION

Top Secret

Secret.

Confidential.

!

CONFIDENTIAL

DRAFT

LETTER

To:-

Dr D C Wilson HONG KONG

Type 1 +

From

RC Samuel

Telephone No. Ext.

DSR11

Restricted.

Unclassified.

PRIVACY MARKING

...In Confidence

cc: Peking

HKGD

MAED

R Impey Esq CAD/DOT

Shell Mex House Strand, LONDON

UNSCHEDULED FLIGHTS FROM CHINA TO HONG KONG

Department

FED

1. I am sorry that a reply to your letter of 9 December has been so long delayed. It first of all fell victim to your new assistant's nuptials and departure from FED and then it seemed best to wait and see what the Chinese had to say to us when Lit called on Rogers on 19 January. You have had a report of this by telegram.

2.

Our interest in what has been happening on these non- scheduled flights has of course been related to the air services agreement. As you will have realised we are anxious that nothing should prejudice our position on the Chinese pre-conditions for signature. We also wanted to see if the Chinese had changed their stand in any way.on this or their refusal to allow traffic rights in Hong Kong. These considerations will continue to weigh with us but as you are aware from our telegram 958 of 9 December we are otherwise content that requests for further non- scheduled flights should be dealt with on their merits. Indeed we can see the advantages that will accrue from agreeing to reasonable requests from the Chinese. You will be helped in building up the good relationship you have with the Chinese and there may be side benefits for our Air Services Agreement negotiations.

3. In view of the local problems you foresee with Jardine's idea of passenger charter flights to Canton for the

restricted periods of the Canton Fairs, we will leave it to

you to decide what to do about that. It is however worth bearing in mind that apart from any revenue which might be earned by Hong Kong the Chinese also would make money from the chartering of their aircraft. They would in consequence gain a further interest in not exaggerating the problem of their aircraft operating into Hong Kong. This could be helpful to us when discussions resume on the Air Services Agreement.

CONFIDENTIAL

Dd 108087 400M S&K 1/77

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