CONFIDENTIAL

- 2.

Condition (ii)

'HMG should try to have the insignia and national flags removed from CAL aircraft.'

Hong Kong thought we might accept the requirement to try to bring about this change without specifying a time scale. (Donald's letter of 13.2.76) The Japanese agreed to this in private and later told the Chinese they had failed.

ibid)?

Condition (iii)

'British authorities (including those in Hong Kong) should refer to CAL as 'China Airlines (Taiwan)'.

Hong Kong Could probably state unilaterally in airport . announcements that CAL was 'based in Taiwan' or refer to it as the Chinese suggest as 'China Airlines (Taiwan)'.

The Japanese agreed to this and promised to use its infuence on Japanese companies.

Condition (iv)

'Hong Kong should give priority to CAAC flights and ensure that these do not coincide with CAL'8'.

Because of ICAO rules and because so many aircraft use Kai Tak airport it would not be possible to make special arrangements to separate particular aircraft and give CAAC priority, although their aircraft and those of CAL would be parked well away from each other (ibid). The Japanese were able to agree priority in private, pending separation by airport. Publicly they said CAAC and CAL aircraft would not be at HANEDA: simultaneously. CAL flights would be transferred from OSAKA.

/Condition (v).............

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