PER CAT A
R3 520
FM PEKING 238703Z
CONFIDENTIAL
CONFIDENTIAL
TO PRIORITY FCO TELNO.668 OF 23.19.78..
INFO PRIORITY HONG KONG.
YOUR TELNO.630:
78
AIR SERVICES.
ра
HKK184/1
601
RECEIVED IV REGISTRY NO. 51 240071978
DK OFFICER
INDEX
PA
Seendas
RESISTRY Action Taken
रहा
566
1.
195
WE NOTE THAT BA ARE NOW SHOWING MORE ENTHUSIASM FOR AN AIR SERVICES AGREEMENT. WE LOOK FORWARD TO SEEING THE COMPRE-1 HENSIVE PAPER, REFERRED TO IN ALLEN'S LETTER OF 31 AUGUST TO STABLES, AND HOPE THAT WE SHALL HAVE A FURTHER CHANCE TO COMMENT BEFORE WE RECEIVE INSTRUCTIONS,
2. IT STILL SEEMS TO US THAT THE CHINESE HAVE AT LEAST AS MUCH TO GAIN FROM AN AIR SERVICE AGREEMENT AS OURSELVES, AND THAT WE SHOULD NOT APPEAR TO BE IN TOO MUCH OF A HURRY. THE CONTINUED UCHINESE USE OF KAI TAK PROGRESSIVELY WEAKENS THE FORCE OF SOME OF THEIR DEMANDS IN RELATIONS TO CAL, WHILE THE FACT THATCOMPARATIVELY FREQUENT CAAC USAGE HAS BEEN ALLOWED HAS
ALREADY REDUCED ANY BARGAINING POWER WE MIGHT DERIVE IN AIR SERVICE
TERMS FROM CHINESE FLIGHTS TO HONG KONG.
3. WE STILL THINK IT RIGHT TO RESIST THE IDEA OF A STATEMENT, AT LEAST UNTIL WE KNOW WHAT OTHER POINTS REMAIN TO BE SETTLED. BUT WE DOUBT WHETHER WE SHALL GET AN AIR SERVICES AGREEMENT WITHOUT SOMETHING. WE HAVE THEREFORE BEEN CONSIDERING POSSIBLE FORMULAE. AS WE SAID IN OUR TELNO.631 THE LOWEST KEY STATEMENT WOULD BE A REFERENCE (EG HAVING REGARD TO THE STATEMENT BY HMG IN THE JOINT COMMUNIQUE ON THE EXCHANGE OF AMBASSADORS IN 1972'') IN THE PREAMBLE OF THE AGREEEMENT. AS SOMETHING A LITTLE LESS LOW KEY, BUT NEVERTHELESS PRESERVING THE PRINCIPLE THAT NOTHING IS CHANGED IN RELATION TO TAIWAN BY THE AGREEMENT, YOU MIGHT CONSIDER
CONFIDENTIAL
/ A STATEMENT