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5. IN A PARTICULAR CATEGORY IS THE UNBLINDING OF THE HONG KONG/ PEKING SECTOR (POINT (B) IN PARAGRAPH 4 OF YOUR TELNO 740). THE
CHINESE MAY CONTINUE TO REGARD THIS AS A REGIONAL SECTOR, IF ONLY
BECAUSE GRANTING IT TO US MIGHT GIVE THEM DIFFICULTIES IN RELATION
TO OTHER COUNTRIES. I THINK THAT WE SHOULD PRESS HARD FOR UNBLIN-
DING. BUT IN THE LAST RESORT YOU MAY WISH TO GIVE GREATER WEIGHT TO THE ABILITY TO OVERFLY CHINA ON SERVICES TO HONG KONG (PARA 4(A) OF YOUR TELNO 740) (WHICH WILL NOT BE EASY TO ATTAIN IN ANY CASE).
IF THERE IS AN UNBLINDING YOU WOULD PRESUMABLY WISH TO OBTAIN AGREEMENT THAT BA MIGHT TAKE PART IN ANY GENUINELY REGIONAL FLIGHTS
OPERATED ON A RECIPROCAL BASIS EITHER THROUGH PARTICIPATION IN A
HONG KONG BASED COMPANY OR THROUGH THE STATIONING OF SEPARATE
AIRCRAFT IN HONG KONG.
6. WE CANNOT JUDGE FROM HERE HOW EASY IT WOULD BE TO OBTAIN THE INCLUSION OF ADDITIONAL POINTS ON THE UK/CHINA ROUTE (PARAGRAPH 4(C) OF YOUR TELNO 740).
7. WE ARE NOT CLEAR FROM YOUR SAVING TEL UNDER REFERENCE WHETHER POINT 2 REFERS TO PARAGRAPH 4(D) OF FCO TELNO 740. SO FAR AS ADDITIONAL REGIONAL FLIGHTS FROM HONG KONG ARE CONCERNED, THE CHINESE HAVE ALREADY (XINHUA OF 12 MARCH) SUGGESTED NANJING AND HANGZHOU FOR CHARTER FLIGHTS, AND LU XUZHANG, DIRECTOR OF TOURISM AND TRAVEL, MENTIONED TO THE GOVERNOR LAST WEEK THAT HE HOPED DIRECT FLIGHTS BETWEEN HONG KONG AND PEKING WOULD SOON BE POSSIBLE.
WOULD SOON BE POSSIBLE. WE SEE NO REASON WHY YOU SHOULD NOT PRESS FOR RECIPROCITY IN THE OPERATION OF SUCH FLIGHTS, ON THE SAMR BASIS AS PARAGRAPH 5 ABOVE, ESPECIALLY IF WE DO NOT SUCCEED IN UNBLINDING THE HONG KONG/PEKING SECTO
ON THE INTERNATIONAL ROUTE. BUT WE SEE LITTLE SCOPE FOR SEEKING
POINTS BEYOND. IF ON THE OTHER HAND YOU ARE THINKING OF FURTHER
POINTS IN CHINA ON THE INTERNATIONAL ROUTE, SHANGHAI WHICH ALREADY ACCEPTS INTERNATIONAL FLIGHTS, IS AN OBVIOUS CHOICE. WUHAN MAY HAVE LONG TERM COMMERCIAL POTENTIAL THOUGH IT IS NOT AT PRESENT AN
INTERNATIONAL AIRPORT. AN ALTERNATIVE WOULD BE TO TRY FOR KUNMING OR NANNING, BOTH OF WHICH HAVE INTERNATIONAL CONNECTIONS, ON ANY ROUTE WHICH OVERFLIES CHINA.
2.
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18. THIS