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4.
IT WOULD BE UNREALISTIC TO EXPECT HONG KONG TO BE THE ONLY
GATEWAY INTO CHINA. ROAD, RAIL AND SEA COMMUNICATIONS BETWEEN
HONG KONG AND CHINA ARE DEVELOPING SATISFACTORILY ON A REGIONAL
BASIS. WE WOULD NATURALLY WISH FURTHER DEVELOPMENT IN AIR
SERVICES BUT AN AGREEMENT ON THE BASIS SUGGESTED BY PEKING TEL
UNDER REF WOULD NOT MATERIALLY ASSIST IN THIS PROCESS BECAUSE:
55.
(A) CAAC SERVICES BETWEEN PEKING AND HONG KONG CANNOT BEGIN
UNTIL TRUNK OPERATIONS BEGIN AND THE GATWICK PROPOSAL LEAVES
GREAT UNCERTAINTY AS TO WHEN THIS WOULD BECOME POSSIBLE, ESPECIALLY IF THE CHINESE INSIST UPON HEATHROW FOR THEIR
TRUNK SERVICES:
(B)
THE DESIGNATION RESTRICTION, IF ACCEPTED, WOULD MEAN IN PRACTICE THAT A SEPARATE HONG KONG BASED AIRLINE WILL HAVE
TO BE ESTABLISHED SOLELY FOR THE PURPOSES OF OPERATING BETWEEN
HONG KONG AND CHINA. SINCE ONLY RIGHTS FOR POSSIBLY TWO
SERVICES A WEEK TO, SHANGHAI WILL BE AVAILABLE, IT IS DIFFICULT
FOR US TO VISUALIZE A COMMERCIAL ORGANISATION WHICH WOULD BE
WILLING TO OPERATE ON THAT BASIS, ESPECIALLY IN THE FACE OF
CERTAIN ADVERSE CAPACITY AND FREQUENCY COMPETITION ON THE
ROUTE FROM CAAC.
IN THE LIGHT OF THE FOREGOING, WE FEEL THAT THE INSTRUCTIONS
CONTAINED IN YOUR TELNO.399 SHOULD NOW BE FOLLOWED.
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6. THE ACTING GOVERNOR HAS SEEN AND AGREED THIS TELEGRAM.
CATER
FILES
MAED
FED
[COPIES SENT TO CAD/DOT]
LEGAL ADVISERS
MR CORTAZZI
COPIES TO
HONG KONG GOVERNMENT OFFICE
LONDON
>
HK & GD NEWS D
MISS BROWN
!
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