CONFIDENTAL
Акк. 18446
29 JUN
193
€12
CONFIDENTIAL
FM FCO 271735Z JUN 79
TO IMMEDIATE PEKING
TELEGRAM NUMBER 378 OF 27 JUNE
INFO IMMEDIATE HONG KONG
*
See 1951 200
|
YOUR TELNO 587: AND HONG KONG TELNO 868 UK/PRC AIR SERVICES
NEGOTIATIONS
FOLLOWING FOR DELEGATION
1. IT IS DISAPPOINTING THAT LU IS NOT PREPARED TO COMMIT THE
་
CHINESE TO REMOVING THE RESTRICTIONS ON THE TRUNK, ROUTE WHEN BA ABANDON THE HONG KONG ROUTEING. HOWEVER, BA ARE PREPARED TO TAKE A GAMBLE THAT THEY WILL BE ABLE TO PERSUADE CAAC TO REMOVE THE RESTRICTION ONCE DIRECT SERVICES BEGIN, IF THE SITUATION IN 4 YEARS' TIME IS MUCH WORSE THAN WE FORESEE, AND BA'S WITHDRAWAL FROM THE HONG KONG ROUTE WOULD MAKE IT QUITE UNECONOMIC FOR BA TO CONTINUE A SERVICE TO PEKING, THEN WE COULD TRY AGAIN TO PERSUADE THE CHINESE TO LET BA CONTINUE TO OPERATE VIA HONG KONG AFTER A HONG KONG-BASED CARRIER HAD COME ONTO THE HONG KONG/PEKING ROUTE. BUT WE COULD NOT AGREE TO THE FORMULA IN PARA 19 OF TELEGRAM UNDER
REFERENCE.
2. WE CANNOT ACCEPT THAT THE CHINESE SHOULD HAVE A SAY IN DETER- MINING WHICH AIRLINES CAN OPERATE BETWEEN HONG KONG AND LONDON. MINISTERS HAVE NOW DECIDED THAT THE CAA PROCEDURES WILL BE USED TO DECIDE THIS. WE HOPE THE CHINESE WILL NOT WANT TO DISCUSS THE ISSUE FURTHER AND YOU SHOULD NOT RAISE IT AGAIN YOURSELF. IF THE CHINESE DO RAISE IT YOU SHOULD SAY THAT THE QUESTION IS HYPO- THETICAL AND THAT IF CPA WERE GRANTED A LICENCE TO OPERATE BETWEEN HONG KONG AND LONDON, THE REPERCUSSIONS, IF ANY, COULD BE COVERED IN A SUBSEQUENT REVIEW.
3. THE DIFFICULTIES DESCRIBED IN PARAS 4 AND 5 OF YOUR TELEGRAM UNDER REFERENCE ARE A SET BACK, BUT THEY SHOULD NOT HOLD UP COMPLETION OF AN AGREEMENT. NEVERTHELESS, WE SUGGEST YOU SHOULD STILL TRY TO GET 2 FREQUENCIES A WEEK ON THE HONG KONG-SHANGHAI ROUTE RESTRICTED INITIALLY TO THE CAPACITY OF A TRIDENT. YOU COULD SAY TO LU PRIVATELY THAT WE ARE ACCEPTING UNCERTAINTIES ABOUT THE VIABILITY OF FUTURE OPERATIONS BY BRITISH CARRIERS SO THAT WE CAN REACH AN OVERALL AGREEMENT WHICH IS IN THE WIDER INTERESTS OF BOTH PARTIES AND ON THE UNDERSTANDING THAT THE
"CHINESE
CONFIDENTAL