CONFIDENTIAL
4. YOUR TELNO 860 ARRIVED AFTER LATHAM LEFT FOR CANTON, BUT WE HAD ALREADY BRIEFED HIM TO PUT DOWN A MARKER ABOUT RECIPROCITY. THE CHINESE GAVE NO SPECIFIC REPLY: BUT LI SHU-FAN GAVE IT AS HIS PERSONAL OPINION THAT RECIPROCITY COULD BE CONSIDERED IN THE LIGHT OF FURTHER CHARTER OPERATIONS. HOWEVER, THE CHINESE SPONTANEOUSLY
LED OUT CATHAY PACIFIC, OR THEIR DORMANT SISTER COMPANY HONG KONG AIRWAYS, BECAUSE OF THE CPA LINK WITH TAIWAN.
སྟ འ
5. WE PROPOSE THAT THE DCA SHOULD NOW GIVE HIS APPROVAL FOR THE FLIGHTS AS REQUESTED BY THE CHINESE BUT LIMIT THEM TO AN INITIAL PERIOD OF THREE MONTHS. SUCH A LIMITATION WOULD RETAIN FOR US SOME FLEXIBILITY AND ALLOW US TO REVIEW HOW THE FLIGHTS ARE OPERATING AND THE IMPLICATIONS BEFORE AGREEING TO A FURTHER
PERIOD.
6. THE CHINESE ARE ANXIOUS THAT THE NEW SERIES OF FLIGHTS SHOULD BEGIN ON 1 DECEMBER (TWO RETURN FLIGHTS PER DAY. IF THIS IS TO BE ACHIEVED, WE WOULD NEED TO GIVE THEM A REPLY ON TUESDAY NEXT WEEK. GRATEFUL THEREFORE FOR ANY COMMENTS DESKBY 3100Z
21 NOVEMBER.
MACLEHOSE
FILES
FED
MAED
HK & GD
HR CORTAZZI
MR MURRAY
MISS BROWN
[COPIES SENT TO CAIR/DOT]
COPIES TO
HONG KONG GOVERNMENT OFFICE
2
CONFIDENTIAL
LONDON