586

كيلك

DEPARTMENT OF TRADE

Our Ref: ED/9/02

RE Allen Esq

Far Eastern Dept FCO

Whitehall SW1

1 VICTORIA STREET

LONDON SWIH OET

UK/CHINA AIR SERVICES AGREEMENT

596

AKK 184/11 7.3. 51

INDEX Telephone Direct Line

Switchboard

PA

REGISTRY

ion Tem

01-215 312

20 October 1978

R+R-with

215

.

-with refs flagged plea

هم

I have agreed with FED that this th is wertaken by Peking telno: 663

db

Your minute of 19 October requested comments on your draft

telegram to Peking.

We think it goes much too far. It seems to be saying essentially the same thing as the Japanese said (para 4 of Tel 600) which resulted in the Taiwanese taking the action they did.

We would much prefer that we stuck to the form of words we previously agreed (Tel 599). We would accept the proposed Hong Kong amendment to that (their Tel 1180), if it was clearly established that CAL was not a private airline; though we are attracted to the original wording because of its ante thesis between state and private. There is clearly some doubt as to CAL's status stemming from how it came to be set up and how it continues to provide a home for retired Taiwanese Air Force Generals. But it does have a registered capital. It might be worth while asking Hong Kong why they are so assertive as to its not being a private company.

We accept that in seeking to stick to the earlier version of the proposed statement we are not going as far as SUNG reportedly wants us to go.

But the latter is too far in that it must in our assessment put CPA's services to and through Taiwan at risk, and the value of getting the ASA signed now or in the near future is not in air services terms such as to warrant taking that risk.

Now that CAAC aircraft are flying regularly to and from Hong Kong, hopefully without incident, surely even the Chinese must begin to accept that there is not a lot of logic in their continuing to stand on their infamous five points, and they might find some such anodyne statement as we are proposing acceptable.

Incidentally I saw a report in the Financial Times the other day that Thai International had now been given the go-ahead by the PRC

/to

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