CONFIDENTIAL
TO CPA. CPA ARE TRYING TO MAKE AN ASSESSMENT OF CAL'S PRESENT
RELIANCE ON HONG KONG: WE WILL LET YOU HAVE IT WHEN IT IS COMPTED
4. WE SUGGEST THAT, IN RAISING THE A.S.A WITH THE CHINESE, MR
DELL SHOULD CONFINE HIMSELF TO EXPLORING THE CHINESE POSITION
WITHOUT ANY COMMITMENT ON OUR SIDE. HE MIGHT, IF NECESSARY, ADD A FRANK COMMENT ON THE NECESSITY, FOR US, OF NOT SAYING
ANYTHING WHICH WILL PUT AT RISK A MAJOR PART OF CATHAY PACIFIC'S
EARNINGS. WE THINK IT WOULD BE BEST FOR HIM NOT TO APPEAR OVER
ANXIOUS TO CONCLUDE AN AGREEMENT. IF THE CHINESE CONFIRM THAT THEIR ONLY CONDITION IS NOW SOME STATEMENT ABOUT THE STATUS OF CAL, WE COULD EXAMINE IN DETAIL WHAT KIND OF STATEMENT MIGHT BE SUFFICIENT TO SATISFY CHINA WITHOUT PROVOKING A REACTION FROM TAIWAN INIMICAL TO HONG KONG'S INTERRESTS.
5. WE AGREE WITH PEKING THAT ONE ADVANTAGE OF MR DELL RAISING THE A.S.A QUESTION WILL BE TO DISCOVER WHAT VIFW THE CHINESE NOW HAVE ABOUT SERVICES TO AND THROUGH HONG KONG. WE ALSO AGREE THAT HE SHOULD SAY THAT WE WISH TO BE HELPFUL ABOUT LOCAL PASSENGER SERVICES WITHIN THE LIMITS OF WHAT IS TECHNICALLY POSSIBLE. EARLY WARNING OF CHINESE REQUESTS FOR FLIGHTS WOULD CERTAINLY MAKE THIS EASIER. M.I.F.T GIVES DETAILS OF JARDI LATEST THINKING IN THIS CONTEXT AND OUR PRELIMINARY RESPONSE, AS WELL AS OF THE LATEST CHINESE REQUEST FOR A CHARTER FLIGHT.
6. IF, FOR ANY REASON, IT IS NOT POSSIBLE TO MAKE PROGRESS ON THE MAIN QUESTION OF THE AIR SERVICES AGREEMENT, WE HOPE IT WILL STILL BE POSSIBLE TO DEVELOP GRADUALLY AD HOC ARRANGEMENTS FOR
LOCAL PASSENGER AND FREIGHT FLIGHTS.
ROBERTS
FILES
FED
MAED
L.Kred
MISS BROWN
MR MURRAY
2
COPIES TO
MR ROGERS
'MR STABLES
} CAIR|DOT
CRE 4 DOT
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