CONFIDENTIAL

G7 240

COMIDENTIAL

FM PEKING 100713Z JUL 79

TO PRIORITY FCO

TELEGRAM NUMBER 629 OF 10 JULY 79

INFO PRIORITY HONG KONG

Нек

189454/2

See(208

206

3.51

"RY

FOLLOWING FROM DELEGATION

20 YOUR TELNO 399:

Lou

UK/PRC AIR SERVICES NEGOTIATIONS

1. LU IS NOW SEIZED OF THE NEED TO BRING THESE NEGOTIATIONS

TO A CONCLUSION AND HELD A FURTHER LENGTHY TETE A TETE WITH

ROGERS ON 9 JULY PM TO SEE WHAT PROGRESS COULD BE MADE ON THE

CUTSTANDING ISSUES.

2.

MUCH OF THE TIME WAS AGAIN TAKEN UP BY THE GATWICK PROBLEM. LU AGAIN SAID HE REGARDS THIS AS A STICKING POINT. HE WAS

ATTRACTED BY THE IDEA OF CONSULTATION (SECOND SENTENCE OF PARA 4 OF MY TELNO 626) BUT INSISTED ON AN ASSURANCE (EITHER WRITTEN OR ORAL) THAT IN THE EVENT OF DISAGREEMENT CAAC COULD OPT FOR HEATHROW. ROGERS MADE IT PLAIN THAT HVQCOULD NOT GIVE SUCH AN

ASSURANCE. ON THE OTHER HAND, LU WAS UNWILLING TO ACCEPT

ROGERS' SUGGESTEION THAT THE MATTER SHOULD NOW BE LEFT ON ONE

SIDE.

WHILE WE WILL CONTINUE TO TRY, IT THEREFORE SEEMS

UNLIKELY THAT WE SHALL BE ABLE TO GET AWAY WITH THE LINE IN

- YOUR PARA 5.

3. ROGERS GAVE LU THE DRAFT OF A SIDE LETTER BASED ON THE

CONCEPT THAT PROBLEM OF POSSIBLE JUNCTION OF SERVICES AT

HONG KONG MIGHT ALSO BE DEALT WITH BY CONSULTATION IF AND WHEN

IT APPEARED LIKELY TO BECOME A PROBLEM. LU SEEMED AT FIRST

BLUSH REASONABLY RECEPTIVE TO THIS: BUT BY THIS STAGE IN THE

DI SCUSSION HE WAS OBVIOUSLY FLAGGING AND WE WOULD NOT WANT TO

PIN TOO MUCH HOPE ON HIS INITIAL REACTION.

14.

CONFIDENTIAL

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