DRAFT TELEGRAM
CONFIDENTIAL
IMMEDIATE
TO HONG KONG (for Governor and BCARFE)
RFI
PRIORITY PEKING
YOUR TEL NO 490: UK/PRC AIR SERVICES AGREEMENT
1.
We shall of course pursue with vigour the question of regional routes from Hong Kong, and shall bear in mind CPA's interests as a potential operator. However, CPA's links with Taiwan are an obvious, potential embarrassment,
A
2. In the course of recent informal discussions with DOT, Bluck and top management of Swire have claimed that their contacts with the Chinese have indicated that there would be no objection to CPA as operator of regional services. (Bluck's projected visit to China in mid May may clarify the situation further.)
relaxation of the Chinese attitude towards services with Taiwan would be consistent with their recent adoption of a more pragmatic approach to Taiwan generally. But their continuing insistence on a British Government statement on China Airlines in connection with ASA is an indication of continuing
Out
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sensitivity on air service aspects, Subject to Peking's views, we do not believe we should, on the basis of reports of informal airline contracts, run the risk of offending the Chinese and complicating the negotiations right from the start by including in the delegation a CPA representative.
3.
Discussions are in progress between BA and Swire about a possible joint company for regional services to China (paragraph 3(v) of Peking Tel No 384 refers). CPA will no doubt discuss
the proposition with you and we hope that they and BA can reach
an understanding before the talks with the Chinese.
4.
Rogers intends to discuss these and other related problems during his visit to Hong Kong. Meantime, grateful you inform CPA that we cannot accept their request.