350
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FM WASHINGTON 182345Z JAN 79
TO ROUTINE FCO
(48
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HKK 184/1.
TELEGRAM NUMBER 241 OF 18 JANUARY
AND TO ROUTINE HONG KONG (GOVERNOR AND BCARFE) No
INFO PEKING
US AIR SERVICES TO CHINA.
1. COUNSELLOR CA AND S HAS SPOKEN TO FARMER (THE CIVIL AERONAUTICS BOARD'S DIRECTOR OF THE BUREAU OF INTERNATIONAL AVIATION) IN THE LIGHT OF YOUR TELEGRAM NO 10 OF 3 JANUARY.
2. FARMER CONFIRMED THAT HE WAS WELL AWARE OF THE TERMS OF BERMUDA 2. THE NON AVAILABILITY OF A US ROUTE THROUGH HONG KONG TO CHINA WAS A DEFECT IN THE AGREEMENT AND YET ANOTHER REASON FOR DISSATISFACTION WITH IT, ALTHOUGH, AS WITH THE QUESTION OF DUAL DESIGNATION AT BOSTON, HE DID NOT EXPECT ANY EARLY CHANGE OF HEART ON CUR PART. HE CONFIRMED THAT ANY TALK OF AN EARLY INAUGURATION OF SERVICES TO CHINA WAS PREMATURE. PAN AM'S ENTHUSIASTIC REFERENCES TO STARTING SERVICES AS FROM THE BEGINNING OF THIS MONTH
HAD IN HIS VIEW BEEN PART OF A KITE-FLY ING EXERCISE PRIMARILY DESIGNED TO PUT PAN AM AT THE HEAD OF THE QUEUE OF US AIRLINES SHOWING INTEREST PUBLICLY IN SERVING CHINA.
3. FARMER AGREED THAT REFERENCES IN THE PRESS TO A BILATERAL. AGREEMENT WITH A PREVIOUS MAINLAND REGIME WERE IRRELEVANT, AND THAT IT WAS MOST UNLIKELY THAT THERE COULD BE ANY QUESTION OF SERVICES BEING INAUGURATED UNTIL THE CHINESE HAD SATISFIED THEM- SELVES THAT A SUITABLE BASIS COULD BE FOUND FOR NEGOTIATING A FULLY
FLEDGED AIR SERVICES AGREEMENT. INDEED FARMER TOOK THE VIEW THAT SERVICES WOULD MOST PROBABLY HAVE TO WAIT UNTIL SUCH AN AGREE- MENT HAD BEEN FINALISED. SINCE THIS IS BOUND TO TAKE SOME TIME ATWOOD (DEPUTY ASSISTANT SECRETARY, DEPARTMENT OF STATE) IS HOPING TO PAY AN INITIAL VISIT TO PEKING SHORTLY.
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