CONFIDENTIAL
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BRANll, HK4D
Foreign and Commonwealth Office
London SW1
T Stables Esq
Department of Trade
Civil Aviation Division CAIR 1A
1 Victoria Street
London SW1H OET
بقيم
Telephone 01- 233-5539
Your reference
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HACK POLY!
Date
XO. 01
DÆK OFFREN INDEX
PA
N Thompson
1 August 1978
See (539 1841
1 SEP 1978
L574
482
Dear DON TOM
CHINA: AIR SERVICES AGREEMENT
1. Since we last discussed this subject on the telephone, FED have had the opportunity to discuss it further with the Ambassador who is at present on home leave. Mr Cradock confirmed our view that it would be worth exploring further (without commitment) recent Chinese hints (reported in Peking telegram No 501 of 11 August) that if HHG could provide a satisfactory statement of our general view of air services to Taiwan, the other Chinese conditions regarding Taiwan might be manageable.
2. As I mentioned to you, research is in hand in the FCC into the "Japanese solution" to their similar problem in the context of the 1974 China/Japan Air Services negotiations
(Ilong Kong telegram No 995 of 15 August refers); but the Ambassador commented that he would like to see a compre- hensive paper which set out all the various clements which have to be considered and attempted to draw up a balance sheet of advantages and disadvantages. We should be grateful for the DOT's assistance in producing this.
3.
J
-
What might be called the purely political arguments previously advanced in favour of an air services agreement namely that we needed some form of agreement to give substance to our developing relationship have lost their force in recent months. We now have other more useful and profitable areas for agreement, including science and technology (where an agreement is now under negotiation) and educational exchanges. The arguments for or against an. Air Services Agreement, therefore, hinge primarily upon the balance of commercial advantage. We should be grateful if
/the
CONFIDENTIAL
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