Akk 184/2
RECEIVED IN RRY NO.
CONFIDENTIAL
INDEX
M
1 1 MAY 1979
OFFICED
PA
the Quay Wis
fur & RATS
MR MURRAY'S MEETING WITH MR ROGERS, THURSDAY 10 MAY
1. There are no significant differences between ourselves and the DOT over our objectives in the forthcoming Air Service negotiations. But we do differ over tactics, and over the importance to be accorded to different objectives.
2.
a.
b.
It would be particularly helpful if Mr Murray could:
emphasize to Mr Rogers the importance of political sensitivities within the Hong Kong/China relationship, and insist on the need for him consistently to consult the Embassy (who will be represented at the talks) and to take their view before entering into any final commitment. Apparently innocuous wordings could have repercussions which could sabotage the negotiations, and also embarrass our overall relations with China;
explain the general political background to the Hong Kong/ China relationship. It has become apparent that Mr Rogers is unaware that Hong Kong conducts a great deal of business with China without embarrassment; and that our general policy is not to insist on asserting our formal position over its status but on the contrary to conduct our business in such a way that neither we nor the Chinese are obliged to take issue with each other's acknowledged views on this question. In particular, Mr Rogers is keen for Department of Trade reasons (ie to delimit the possibility of Hong Kong adopting an independent negotiating stance on Air Service issues) that arrangements for regional services should be included in the ASA. He is also fond of
suggesting that HMG must want this for "constitutional" reasons, to obviate the "embarrassment" of having HMG /Hong Kong negotiate with Chinese regional authorities. It would be useful if this canard could finally be nailed. If the Chinese insist (as they probably will) on regional arrangements being negotiated separately, this should not be a sticking point for our side.
CONFIDENTIAL