CONFIDENTIAL
2.
successfully for at least the past year.
It would in any
case presumably be open to them to ask the DOT to support or
even to lead their negotiating team.
Both points give rise to one general point. Although we
have all described the forthcoming talks in Peking as "technical",
there are in fact some points of considerable substance.
The
talks will undoubtedly be tough: Mr Draper's talks with CAAC in
Peking were encouraging, but we should not exaggerate the extent
of Chinese concessions to date.
flying rights seems to be less a
context of signature of an ASA, than a consequnce of broader
Chinese policy considerations; and their comments
and their comments on unblinding
in Hong Kong would likewise seem to fall far short of what we
would all like.
However our own hand is not weak, particularly
Their commitment on over-
concession to the UK in the
because of Hong Kong.
The Chinese now appear to want an ASA
quite as much as we do, and we believe that we ought to be able to secure concessions beyond those indicated in the initial
negotiating position staked out to Mr Draper.
In this process
the-question of the handling of regional services could be a useful
bargaining counter.
I hope that we can be flexible on what
ought to be technical issues (such as Hong Kong's autonomy of
negotiation, and the language affecting constitutional
considerations); but that we shall negotiate hard for further
concessions of substance.
1 May 1979
CC: Mr Quantrill HKGD
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CONFIDENTIAL
J.T. Workfield
J T Masefield
Far Eastern Dept