CODE 18-77

CONFIDENTIAL

Reference

RICH

Mr Northover, MAED (G63A/1)

PAAKA 184/2

- 3 MAY 1979

5. S

BY

INDE

No

83.5 s

10

CHINA: AIR SERVICES

1.

Thank you for sending me copies of two further DOT draft telegrams on the China Air Services Agreement.

2. Much of the first draft is otiose(particularly para 2) and is unlikely to be welcomed as guidance by Peking; the Embassy know very well that we are seeking substantial changes in the ASA, and in general terms what they are. Similarly para 3 appears to be designed to convince Peking that it is right to hand over the Chinese a fully amended draft text; this was in fact Peking's suggestion, in their tel no 394.

3. What the Embassy do need (and what is not included in the telegrams) is guidance on our general negotiating stance further to that in the "line to take" provided by the DOT; they should not be left to draw their own conclusions about this from the amended text. They should presumably be instructed to tell the Chinese that what they are handing over is intended as a basis for negotiation (we do not want negotiations to break down before they have started); and be given a check list of what the DOT will be negotiating for (eg unblinding in Hong Kong etc). Provision by the DOT of briefing for the Embassy along these lines would also give us an opportunity to review and comment on it.

- 4.

Since the Embassy will not be able to use the "line to take" until they have the amendments being sent by tele- letter, the second of the DOT's draft telegrams can be dispensed with for the moment and briefing sent off with the teleletter of amendments. I attach a shorter redraft of the first telegram.

2 May 1979

cc: Mr Williamson, HK&GD

Mr Masefield

CONFIDENTIAL

вел

R C Fursland

FAR EASTERN DEPARTMENT (K255)

233 5539

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