GPS 630
CONFIDENTIAL
CM PEKING 049700Z JUL 79
PRIORITY FCO
CONFIDENTIAL
TELEGRAM NUMBER 610 OF 4 JULY
INFO PRIORITY HONG KONG.
Hkk 184/7
BY NO.
5 JUL 1979
198
PA W sp
FOLLOWING FROM DELEGATION.
197
OUR TELNO.504:
IN'
по
No 1867
See 199
1.
UK/PRC AIR SERVICES NEGOTIATIONS.
SITUATION FURTHER COMPLICATED BY ARRIVAL HERE OVER THE WEEK- END OF NEWBIGGING AND MCLEOD (CHAIRMAN AND MANAGING DIRECTOR. RESPECTIVELY) OF JARDINES. THEY HAD COME FOR TALKS ABOUT A WIDE SPECTRUM OF THEIR INTERESTS IN CHINA (SEMICOLON) BUT HAD BEEN INVITED SPECIFICALLY BY CAAC TO DISCUSS THEIR AVIATION INTERESTS AT A DINNER PARTY ON 3 JULY. THEY DISCUSSED THIS FIRST WITH THE AMBASSADOR AND SUBSEQUENTLY WITH ROGERS.
2. NEW BIGGING CLAIMED HE HAD DONE HIS BEST TO RECONCILE DIFFERENCES N TH CPA OVER THEIR RIVAL AVIATION INTERESTS. HE HAD OFFERED SOME TIME AGO TO COOPERATE WITH CPA IN DEVELOPING AIR SERVICES BETWEEN HONG KONG AND CHINA (SEMICOLON) BUT AFTER LYING ON THE TABLE FOR SOME TIME THIS OFFER HAD RECENTLY BEEN REJECTED. NEWBIGGING CLAIMED THAT BREMRIDGE HAD EVEN DECLINED TO GIVE ANY ASSURANCE THAT CPA WOULD NOT SEEK TO TAKE AWAY FROM JARDINES THEIR CONTRACT FOR HANDLING CAAC'S SERVICES TO HONG KOWX. IN VIEW OF THIS NEWBIGGING FELT JARDINES WERE AT LIBERTY TO TAKE SUCH ACTION AS THEY FELT APPROPRIATE TO PROMOTE THEIR AVIATION INTERESTS (TO WHII, ALTHOUGH RELATIVELY SMALL, THEY ATTACHED CONSIDERABLE IMPORTANCE) AS AGAINST THOSE SWIRES. IN SO DOING, HOWEVER, HE HAD NO WISH TO DO OR SAY. ANYTHING WHICH MICHT MAKE CUR NEGOTIATIONS HERE MORE DIFFICULT.
3. IN DISCUSSION WITH ROGERS, NEWBIGGING CLAIMED THAT JARDINES HAD MUCH EXPERIENCE OF COLLOARATING WITH THE PRC. THEY HAD STUCK IT OUT HERE DURING THE DIFFICULT DAYS OF THE CULTURAL REVOL- UTION AND WERE NOW DETERMINED TO REAP THE BENEFITS. THEY DID NOT EXPECT THERE WOULD BE MUCH SHORT TERM GAIN(AND WERE PREPARED EVEN FOR A SHORT TERM LOSS) THOUGH OPERATING AIR SERVICES INTO CHINA BUT THEY BELIEVED THAT BY A IXTURE OF OPERATING THEIR OWN SERVICES AND COLLABORATING WITH CAAC IN VARIOUS WAYS THEY COULD WORK TO
CONFIDENTIAL
/THEIR OWN