CONGIDENTIAL
(111) CAAC INSIST THAT REGIONAL FLIGHTS FROM HONG KONG TH
OTHER POINTS IN CHIMA SHOULD HE THE SUBJECT OF SEPARATE NEGOTIATIONS BETWEEN HONG KONG AND THE REGIONAL AUTHORITIES IN CHINA. THEY EXPECT THAT THE U AND HONG KONG WILL Er OVER THE PROBLEM THAT AUTHORITY FOR SCHEDULED SERVICES ISSUES FROM THE DOT ALONG THE LIKES OF THE ARRANGEMENTS FOR THE EXISTING SCHEDULED SERVICES METHEEN HONG ONG VID GUANGZHOU.
} }
I
(IV) FULL UNBLINDING OF THE HONG KOND/PEKING SECTOR ON THE
BA INTERNATIONAL ROUTE VILL CREATE DIFFICULTIES FOR THE CHINESE, WHO ARE NOT PREPARED TO ACCEPT LOCAL PAGOPN- GERS BEING TAKEN ON THIS SECTOR. OUT THEY ARE OPEN TO PERSUASION THAT BA SHOULD HAVE THE RIGHT TO CARRY HORE THAN THOSE PASSENTERS WHO HAVE STOPTED OVER IN HONG SONG ON THE BA FLIGHT TO PEKING FROM EUROPE - TE TO ALLOW THOSE PASSENGERS WHO HAVE TRAVELLED TO HONG KONG BY ANY BA FLIGHT FROM LONDON, THOSE WHO HAVE TRAVELLED TO HONG ONG 37 DA FROM ANY POINT OF ORIGIN, OR CONCEIVABLY ANY PASSENGERS WHO WERE NON-HONG KONG RESIDENTS AND ALSO HAD ARRIVED IN HONG "ONG RECENTLY BY ANY CARRIER. THE TEAM HAD THE IMPRESSION THAT CAAC MERE CONCERNED PRINCIPALLY ABOUT THE POLITICAL IMPLICATIONS OF ALLOWING BA TO CARRY LOCAL PASSENGERS', RATHER THAN THE COMERCIAL EFFECTS OF ALLOWING RA TO TAKE A SHARE OF THE B/PEKING TRAFFIC.
(V) IN THE FRAMEWORK OF REGIONAL ARRANGEMENTS, CAAC DID NOT OPPOSE THE IDEA THAT BRITISH AIRWAYS, IN CONJUNCTION WITH JARDINES AND POSSIPLY CATHAY PACIFIC SHOULD SET UP AN AIRLINE TO RUN SERVICES FROM HONG KONG TO POINTS IN CHINA ALONGSIDE CAAC,
(VI) CAAC HAVE NO PLANS TO OPEN A SERVICE TO THE UK UNTIL THE SPRING OF 1931 AT THE EARLIEST, HEN THEY HAVE AC UTRED THEIR FIRST 747, AT FIRST THEY RESISTED THE IDEA THAT 3A CUGHT TO OPEN UP EARLIER (NOVEMBER 1 IS THE BA TARGET DATE), ON THE GROUNDS THAT THE HOTEL ACCOMODATION IN PEPING IS MADE WATE TO COPE WITH AN EXTRA PLANS LOAD PER VESK. THIS WAS TO A CERTAIN E TENT OVERCOME BY 3A POINTING
2