GRS 300
CONFIDENTIAL
FN REYING 070830Z FEB 79
TO PRIORITY FCO
TELNO 171 OF 7.FEB
CONFIDENTIAL
(113
AND TO HONG KONG, KUALA LUMPUR (FOR ROGERS)
RFI HONG KONG GOVT OFFICE LDN
110 HONG KONG TELNO 211: AIR SERVICES
PA
No
Jizz
See (128
1. I AGREE THAT WE DO NOT WISH TO BRING THE HONG KONG/GUANGZHOU
SERVICES TO AN END IF WE HAVE NOT IN THE NEXT THREE WEEKS REACHED AGREEMENT ON THE ASA. TO DO SO WOULD HARDLY BE CONSISTENT WITH WHAT WE SAID IN AGREEING TO THE TEMPORARY ARRANGEMENT FOR SCHED-
ULED FLIGHTS. THE CHINESE MAY WELL COME BACK TO US ON THE ASA WHEN THEY APPROACH US ABOUT RENEWING THE OPERATING PERMIT. PROV-
IDED THAT THEIR LINE ON THE ASA IS REASONABLE, THEN WE MIGHT WELL AGREE TO THE LOCAL FLIGHTS CONTINUING FOR A FURTHER LIMITED PERIOD WHILE THE QUESTION IS UNDER CONSIDERATION.
2.
I HAVE NO STRONG VIEWS ON WHETHER ''REGIONAL' SERVICES ARE
FORMALLY COVERED BY THE ASA OR A SIDE LETTER, AND AGREE THAT
DETAILED ARRANGEMENTS FOR THEM COULD BE DEALT WITH BY DCA HONG KONG. BUT THERE IS AN OBVIOUS LINK BPCHEEN THE TWO TYPES OF SERVICE, AND BEFORE AGREEING TO ANY PERMANENT ARRANGEMENT FOR
+
REGIONAL SERVICES WHICH ARE LIKELY TO COVER CITIES OTHER THAN CANTON, WE SURELY NEED TO KNOW THE CHINESE VIEW ON TECHNICAL AMENDMENTS TO THE ASA. SOME OF THEM MAY NOT BE NEGOTIABLE (EG OVERFLIGHTS OVER SOUTH CHINA), BUT WE SHOULD BE IN A STRONGER POSITION ON EG UNBLINDING THE HONG HONG/PEKING SECTOR. CERT- AINLY SO LONG AS NO HONG KONG OR UK-BASED AIRLINE IS IN A POSITION TO OPERATE RECIPROCAL REGIONAL FLIGHTS FROM HONG KONG, IT WOULD. SEEM WRONG TO GRANT A CAAC MONOPOLY ON THESE FLIGHTS WITHOUT ANY
CONCESSIONS ON THE ASA,
CRADOCK
FILES:
FED
NAD
HKGD
MAED
[COPIES SENT TO CAD/DOT]
COPIES TO:
HKGO LONDON
MK MURRAY
MISS BROWN
CONFIDENTIAL