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IMMEDIATE HONG KONG (FOR GOVERNOR AND BOARFE).
TELEGRAM NUMBER 260 OF 8 MAY
P.P
RA
10 MAY 2
AND TO PEKING
ه
77
No
Fros
&
YOUR TELNO 530 AND PEKING TELNO 406: UK/PRC AIR SERVICES NEGOTIATIONS
88
1. SO FAR AS REGIONAL SERVICES ARE CONCERNED, THE MOST IMPORTANT
OBJECTIVE IS TO ESTABLISH A FRAMEWORK WITHIN WHICH SERVICES CAN BE
DEVELOPED BY BOTH SIDES AS THE DEMAND MATERIALISES. WE SHOULD PREFER TO DEAL WITH REGIONAL SERVICES IN THE AGREEMENT ITSELF. IF THE CHINESE OBJECT, WE SHALL HAVE TO ADJUST OUR TACTICS: WE AGREE THAT
IT WILL BE IMPORTANT TO AVOID A WRANGLE OVER THE STATUS OF HONG
KONG. WE ARE ALSO TRYING TO HOLD OPEN THE POSSIBILITY OF DESIGNAT-
ING A SEPARATE AIRLINE ON THE REGIONAL ROUTES AND THIS IS REFLECTED
IN THE DRAFT TEXT. HOWEVER, THE PRC HAVE NOT SO FAR CONCEDED DUAL DESIGNATION TO ANY OTHER COUNTRY AND THEY REJECTED OUR OWN
PROPOSALS ON THIS POINT IN 1973. WHILE (AS IN OTHER RESPECTS) WE
INTEND TO TRY AFRESH, WE CANNOT BE SURE THAT THE CHINESE WILL AGREE.
THE QUESTION WHICH AIRLINE MIGHT OPERATE SUCH SERVICES IS
SUBSIDIARY TO THAT AND WE WOULD PREFER TO LEAVE IT IN ABEYANCE FOR
THE TIME BEING.
2. WE HAD UNDERSTOOD THAT IT WAS FAIRLY COMMON KNOWLEDGE IN HONG
KONG THAT THE POSSIBILITY OF A JOINT COMPANY WAS BEING DISCUSSED, AT LEAST BY BRITISH AIRWAYS AND SWIRE. THERE WAS A PUSSING REFERENCE TO THIS IN PARAGRAPH 3(V) OF PEKING TELNO 384.
54
3. SINCE CPA ARE PREPARED TO TAKE THE POSSIBLE RISK OF JEOPARDISING
THEIR POSITION WITH TAIWAN, WE SHALL BE GLAD TO HAVE MILES WITH
US ON THE USUAL BASIS. WE AGREE WITH YOU AND PEKING, HOWEVER,
IF THE CHINESE OBJECT, WE SHOULD NOT PRESS FOR CPA'S PARTICIPATION.
CARRINGTON
FILES
[COPIES SENT TO CAD/DOT]
THAT
MAED
FED
HK YG D LEG ADV
MISS BROWN MR MURRA
HURRAY
CONFIDENTIAL