3.
THE MAIN POINTS TO COME OUT OF THE DISCUSSIONS WERE AS FOLLOWS:-
(1) OVERFLYING RIGHTS OVER SCUTHERN CHITA ON THE EXISTING ROUTE TO HONG KONG WOULD BE GRANTED ON APPLICATION, EVEN PRIOR TO SIGNATURE OF AN ASA. THERE WAS, HOWEVER, LITTLE LIKELIHOOD THAT RIGHT TO USE THE SILK ROAD ROUTE THROUGH
WESTERN AND CENTRAL CHINA WOULD BE AVAILABLE IN THE NEXT
FEW YEARS,
(11) CAAC DO NOT INTEND TO PROPOSE ANY AMENDMENTS THEMSELVES
TO THE ASA. THEY WILL NOT OBJECT TO ''TECHNICAL AMENDMENTS'' PROPOSED BY OUR SIDE, EITHER TO THE MAIN TEXT RESULTING FROM ICAO MEMBERSHIP, OR TO ROUTINGS IN THE ANNEX.
(111) CAAC INSIST THAT REGIONAL FLIGHTS FROM HONG KONG TO
OTHER POINTS IN CHHINA SHOULD BE THE SUBJECT OF SEPARATE
NEGOTIATIONS BETWEEN HONG KONG AND THE REGIONAL AUTHORITIES
IN CHINA. THEY EXPECT THAT THE UK AND HONG YONG WILL GET
OVER THE PROBLEM THAT AUTHORITY FOR SCHEDULED SERVICES
ISSUES FROM THE DOT ALONG THE LINES OF THE ARRANGEMENTS
FOR THE EXISTING SCHEDULED SERVICES BETWEEN HONG YONG AND
GUANGZHOU.
(IV) FULL UNBLINDING OF THE HONG KONG/PEKING SECTOR ON THE
3A INTERNATIONAL ROUTE WILL CREATE DIFFICULTIES FOR THE
CHINESE, WHO ARE NOT PREPARED TO ACCEPT **LOCAL' PASSEN-
GERS BEING TAKEN ON THIS SECTOR. BUT THEY ARE OPEN TO
PERSUASION THAT BA SHOULD HAVE THE RIGHT TO CARRY MORE
THAN THOSE PASSENGERS WHO HAVE STOPPED OVER IN HONG YONG
ON THE BA FLIGHT TO PEKING FROM EUROPE - IE TO ALLOW THOSE
PASSENGERS WHO HAVE TRAVELLED TO HONG KONG BY ANY BA "LIGHT FROM LONDON, THOSE WHO HAVE TRAVELLED TO HONG YONG 3Y 3A FROM ANY POINT OF ORIGIN, OR CONCEIVABLY ANY PASSENGERS
WHO WERE NON-HONG KONG RESIDENTS AND ALSO HAD ARRIVED IN
HONG VONG RECENTLY BY ANY CARRIER. THE TEAM HAD THE
IMPRESSION THAT CAAC WERE CONCERNED PRINCIPALLY ABOUT
THE POLITICAL IMPLICATIONS OF ALLOWING BA TO CARRY **LOCAL
PASSENGERS' RATHER THAN THE COMMERCIAL EFFECTS OF ALLOWING
BA TO TAKE A SHARE OF THE H/PEKING TRAFFIC.
(V) IN THE TRAMEWORK OF REGIONAL ARRANGEMENTS, CAAC DID NOT OPPOSE THE IDEA THAT BRITISH AIRWAYS, IN CONJUNCTION WITH JARDINES AND POSSIBLY CATHAY PACIFIC SHOULD SET UP A AIRLINE TO RUN SERVICES FROM PONG TONG TO POINTS IN CHEMA. SE MINSIDE. CAME