CONFIDENTIAL
(600
578
HKK 184/1
664
CAIVED IN RECISTAY HO. 51
2 7 NOV 1978
R 500
CONFIDENTIAL
DESKBY 250030Z (HONG KONG)
FM FCO 241833Z NOV 78
See 665
TO IMMEDIATE PEKING
666
TELEGRAM NUMBER 740 OF 24 NOVEMBER
663
INFO IMMEDIATE HONG KONG DESK BY 2500302
667
INDEX
MIPT: AIR SERVICES
669
672
DESK OF CER
ZA
at
WE HAVE CONSIDERED CAREFULLY THE POSSIBLE FORMULAE OUTLINED
R
1.RY
Aan
CLE
IN YOUR TELNO 663 WHICH MIGHT MEET THE CHINESE CONDITIONS FOR
CONCLUDING AN AIR SERVICES AGREEMENT.
2. WE AGREE THAT YOU SHOULD OFFER AS OUR OPENING BID; A STATEMENT IN THE TERMS OF PARA 3 OF YOUR TUR. IF THE CHINESE
REGARD THIS AS INSUFFICIENT, YOU SHOULD REFER BACK TO YOUR EARLIER REMARKS ABOUT THE HELPFUL AND CONSTRUCTIVE ATTITUDE WE
HAVE ADOPTED TOWARDS CHINESE REQUESTS FOR FLIGHTS BETWEEN CHINA AND HONG KONG (PARA 4 OF MIPT) AND EXPRESS DISAPPOINTMENT AT THE
CONTRASTING INFLEXIBILITY OF THE CHINESE RESPONSE. YOUR FINAL
OFFER SHOULD BE TO ADD A SENTENCE TO THE PROPOSED STATEMENT AS
FOLLOWS:-
QUOTE THE EXISTING SERVICES ON THE REGIONAL ROUTE BETWEEN HONG
KONG AND TAIWAN, HOWEVER, ARE OPERATED BY PRIVATE AIRLINES
UNDER A NON-GOVERNMENTAL AGREEMENT BETWEEN THE AIRLINES CONCERNED,
UNQUOTE
3. IN VIEW OF HONG KONG'S RESERVATIONS ABOUT THE FINAL FALL
BACK POSITION IN PARA 5 OF YOUR TELNO 663, WE ARE NOT PREPARED TO GO THIS FAR, ALTHOUGH WE REALISE THAT THIS MEANS OUR FINAL
POSITION FALLS SHORT OF WHAT THE CHINESE HAVE INDICATED THEY WOULD
· LIKE (SUNG'S REMARKS TO YOU IN PARA 1 OF YOUR TELNO 663, AND TO CORTAZZI, FCO TELNO 630 OF 16 OCTOBER).
4. WHILST WE WOULD SETTLE FOR SIGNATURE OF AN ASA IN ITS PRESENT
DRAFT FORM IN PREFERENCE TO NO ASA AT ALL, WE WOULD. NONE- THELESS WANT YOU TO EXPLOIT TO THE FULLEST THE POSSIBILITY OF GETTING AN OPPORTUNITY TO AMEND THE ASA TO MAKE IT OF MORE VALUE,
WE WERE PREPARED TO SETTLE IN 1973 FOR THE BEST WE COULD GET THEN, WHICH BEST WE ACKNOWLEDGED WAS SOME WAY SHORT OF WHAT WE WOULD HAVE LIKED. NOW THAT THE POLITICAL CLIMATE HAS IMPROVED, WE HOPE THAT WE COULD GET SOMETHING BETTER. THE PARTICULAR THINGS THAT
WOULD BE OF VERY REAL VALUE ARE :-
CONFIDENTIAL
/A)THE ABILITY
: