ANNEX A

POLITICAL ASPECTS OF JAPAN/PRC AIR SERVICES AGREEMENT

The Japanese drew up a 6-point policy to meet Chinese demands. This was made public in January 1974. The Chinese gave it their "understanding". The text is attached.

2 The Japanese Foreign Minister stated publicly at the time of signature (April 1974) that Japan did not recognise CAL as the flag carrier of a sovereign state airline or its insignia as a national flag.

3 The Taiwan authorities immediately stopped the air services between Japan and Taiwan by both JAL and CAL.

4 The Taiwan authorities told CPA that they suspended the services so quickly because the Japanese had explicitly accepted the Chinese thesis that Taiwan was a province of China.

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5 The Chinese did not ask for the closure of CAL offices in Japan or termination of CAL flights to Japan. (In fact, the Taiwanese closed the office on 1 May 1974; the second point is covered by the 6-point policy.)

6 In July, 1975, Japan and Taiwan made a "non-Governmental agreement" (using agencies) for the resumption of air services. The Japanese Foreign Minister stated in a Parliamentary Committee that it is unfortunate that the Japanese Government's statement last year about the status of Taiwan's flag had invited misunderstanding. No-one, including Japan, can deny the fact that there are countries which recognise Taiwan's flag as a national flag." Chinese reaction to this was not significant.

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