CONFIDENTIAL
writing to DOT to say so.
5. Two other interesting angles emerged. First, on the implications of the Government's airports policy. Mr Rogers sensibly proposes to tell the Chinese next month that when they finally start their service from Peking to London (say sometime in 1980) their airline will have to use Gatwick, since no new services are allowed into Heathrow. Since BA hope to start their service to Peking by extending their Hong Kong flights there twice a week or so in the first instance, BA would certainly resist moving from Heathrow to Gatwick. If the Chinese can be persuadeded to allow British Airways to continue from Heathrow while they use Gatwick once they start their own services, well and good. If not, there will be trouble. Secondly, the reference in paragraph 3V of Peking telegram No 384 to the possible esta- blishment of a new airline to do the Hong Kong/China regional routes relates to a desire by British Airways not to let. CPA have all the profits from these routes. It now looks more likely that British Airways will do a deal with CPA rather than Jardine's, but nothing is settled yet. Mr Cradock suggested that a telegram should be sent to. Hong Kong next week in an attempt to get this particular part of the picture clearer before Mr Rogers goes to Hong Kong on his way to Peking. We will get in touch with the DOT about a draft.
сс
Mr Quantrill HKD
Miss Stoddart/Mr: Northover
26 April 1979
MRMorland
!
MR Morland
Maritime, Aviation and Environment
Department
CONFIDENTIAL