CONFIDENTIAL
200
Ga Sie'
FIDENTIAL
SKBY 851358Z
FY PEKING 059934Z JULY 79
TO IMMEDIATE FCO
ник 1844/20
51
TELEGRAM NUMBER 612 OF 5 JULY 86-7.
AND TO IMMEDIATE HONG KONG
STAY
Takı
Rar
Mr Wilkamison
See (201
204
199 TELNO 615: UK/PRC AIR SERVICES NEGOTIATIONS
MY
1.
IT SEEMS QUITE CLEAR FROM LU'S COMMENTS AS REPORTED IN TUR THAT, DESPITE THE STRONG POLITICAL PUSH ON 27 JUNE, THE CHINESE ARE NOT PREPARED TO GIVE WAY ON THE OUTSTANDING POINTS.
ON 5 JULY ASSISTANT FOREIGN MINISTER SONG TOLD US THERE WERE
NO DIFFERENCES BETWEEN THE POSITIONS OF THE MFA AND CAAC.
2. ! THIN WE SHOULD ACCEPT THIS AND BRING THE NEGOTIATIONS
TO A SWIFT CONCLUSION PY AGREEING TO THE CHINESE TERMS. THESE
ARE WITHIN PRESENT INSTRUCTIONS, WITH THE EXCEPTION OF THE
MARROV INTERPRETATION THE CHINESE HAVE PUT ON THE NUMBER OF
SEATS TO BE AVAILABLE ON BA'S TRUNK ROUTE SERVICES, WHICH |
UNDERSTAND WILL NOT BECOME A PRACTICAL DIFFICULTY UNTIL SOME
CONSIDERA LE TIME AFTER SERVICES START.
3. THE REMAINING OUTSTANDING ISSUE NOT COVERED BY INSTRUCTIONS
IS THE CHINESE REFUSAL SO FAR TO ALLOW US TO DESIGNATE AS A
''LOCAL HONG KONG CARRIER ONE THAT OPERATES BET EEN LONDON AND
HONG KONG THE CHINESE INTENTION IS NOT TO DETERMINE WHO OPERATES BETWEEN LONDON AND HONG KONG (PARAGRAPH
195
103 2 OF YOUR TELNO 378 AND PARAGRAPH 3 OF OUR TELNO 500), BUT TO ENSURE
THAT ANY CARRIER FLYING LONDON/HONG KONG CANNOT ALSO FLY THE
REFIONAL ROUTES (SINCE, IN THEIR VIEW, THIS WOULD EFFECTIVELY GIVE-US A SECOND ROUTE LONDON/CHINA) 1 FEAR THAT WE SHALL
HAVE TO GIVE WAY ON THIS POINT. BUT WE SHALL ATTEMPT TO DO SO
IN SUCH A WAY AS NOT TO PRECLUDE CPA (OR ANY OTHER AIRLINE)
FROM PUTTING IN A BID TO OPERATE BOTH ROUTES, SAY SY USING SEPARATE COMPANIES ON THE LONDON/HONG KONG AND ON THE REGIONAL
ROUTES.
CONFIDENTIAL
14.