GRS 350
CONFIDENTIAL
CONFIDENTIAL
LAST PAPER
FM WASHINGTON 220100Z DEC 78
TO ROUTINE DEPT OF TRADE
TELEGRAM NUMBER ALLOT 288 OF 21 DECEMBER
INFO HONG KONG
PA
HKK 184/1
(169).
RECEIVED IN REGARY NO. 51
DEC 1978
INDER
OFFICER
REGISTRY
Action Taken
No
U.S. AIR SERVICES TO CHINA.
1. FOLLOWING THE ANNOUNCEMENT BY PRESIDENT CARTER THAT RELATIONS
WITH CHINA WOULD BE NORMALISED, PAN AM HAS ASKED THE CAB FOR
PERMISSION TO BEGIN FLIGHTS BETWEEN SAN FRANCISCO AND PEKING ON JANUARY 1 1979. THE PROPOSAL IS FOR THREE SERVICES PER WEEK. ONE WOULD BE NON-STOP BUT THE OTHER TWO WOULD OPERATE AS EXTENSIONS
OF PAN AM'S CURRENT SERVICES BETWEEN SAN FRANCISCO AND HONG KONG.
??
2. YESTERDAY'S AVIATION DAILY INDICATES THAT ALTHOUGH NORTHWEST,
PAN AM AND TRANSWORLD OBTAINED CAB PERMISSION MANY YEARS AGO TO
SERVE MAINLAND CHINA. THIS WAS IN THE CONTEXT OF A BILATERAL
AGREEMENT SIGNED IN DECEMBER 1946 WHICH THE U.S. ''SWITCHED TO
TAIWAN AFTER IT BROKE OFF RELATIONS WITH MAINLAND CHINA. CAB
OFFICIALS ARE, THEREFORE, SCEPTICAL ABOUT WHETHER ANY OF THESE
THREE AIRLINES WILL BE ABLE TO SERVE CHINA WITHOUT A NEW BILATERAL
AIR SERVICES AGREEMENT BEING NEGOTIATED FIRST. A REPORT IN THE
NEW YORK TIMES QUOTES A STATE DEPARTMENT SOURCE AS SAYING THAT AS
A PRACTICAL MATTER THE FIRST STEP TOWARDS THE CPENING OF AIR
SERVICES SHOULD INDEED BE SUCH AN AGREEMENT. THE SOURCE IS ALSO
QUOTED AS SAY ING THAT A TASK FORCE HAS BEEN SET UP TO DEAL WITH
COMMERCIAL RELATIONS IN GENERAL AND THAT IT IS FAIR TO SAY THAT
THE SENTIMENT IS TO GIVE AVIATION HIGH PRIORITY SINCE IT WILL BE
USEFUL IN SETTING THE STAGE FOR OTHER AGREEMENTS.
CONFIDENTIAL
13. NO
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