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4. ON THE OTHER HAND LU WAS EMINENTLY REASONABLE IN DISCUSSION
ABOUT THE TIMING OF THE START OF THE VARIOUS SERVICES AND THE WAY
IN WHICH THE CMU'S AND FORMAL AIR SERVICES AGREEMENT WOULD F
TOGETHER.
5. LU ALSO DID NOT RAISE THE TOPIC OF GATWICK. SINCE WE HAD MADE OUR POSITION PLAIN AT THE DRAFTING GROUP MEETING ON 28 JUNE (PARA 2
OF OUR TELNO.599) AND IN VIEW OF EXTREME UNLIKELYHOOD THAT WE
COULD GET CHINESE TO ACCEPT WORDING WHICH WOULD STRENGTHEN OUR LEGAL POSITION AS COMPARED WITH RELYING ON TEXT OF ASA, ROGERS
THOUGHT IT UNPROFITABLE TO CARRY THIS FURTHER.
E
ROGERS REMINDED LU.OF THE LENGTH OF TIME THAT THESE NEGOTIA-
TIONS HAD NOW LASTED AND SUGGESTED THAT SOTH SIDES SHOULD NOW USE
THEIR BEST ENDEAVOURS TO FINISH THEM OFF PROMPTLY.
7.
FURTHER TO FINAL PAR A OF TUR, NEWBIGGING AND MCLEOD REPORTED
THAT THEIR DISCUSSIONS WITH CAAC WERE IN GENERAL TERMS AND THAT NO
SPECIFIC PROPOSALS WERE MADE ON EITHER SIDE.
8. WHEN DISCUSSION RESUMES ON DESIGNATION PROBLEM (PARA 3 ABOVE), ROGERS INTENDS TO TRY TO FIND SOME FORM OF WORDS WHICH WOULD LEAVE THIS QUESTIONVOPEN. IF THIS FAILS, AND IF THE CHINESE REFUSE TO BACK DOWN, WE MAY NEED YOUR URGENT DECISION ON HOW
FAR WE CAN GO.
CRADOCK
FILES
MAED
HK & GD
SEAD
FED
LEGAL ADVS.
PS
PS/LPS
PS/MR. BLAKER
PS/MR. RIDLEY
PS/PUS
SIR A DUFF MR.MURRAY MR. CORTAZZI MISS BROWN
[COPIES SENT TO CAD/DOT]
2,
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