GR 270

CONFIDENTIAL

CONFIDENTIAL-

FM HONG KONG 210900Z JUN

TO IMMADIATE F.C.O.

584/1974

187

Hkk 184/2

2 5 JUN 1979-

IND

Taken

по

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TELEGRAM NUMBER 833 OF 21 JUNE, 1979

INFO IMMEDIATE PEKING AND ROUTINE HONG KONG GOVT. OFFICE LONDON.

PEKING TELNO 573: UK/PRC AIR SERVICES NEGOTIATIONS,

1. ON THE POINT IN PARAGRAPH 4 OF TUR, WE HAVE BEEN. SOMEWHAT SURPRISED ALL ALONG THAT LU HAS BEEN APPARENTLY PREPARED TO CONSIDER THE VARIOUS PROPOSALS LEADING TO OPTION 'A'. FOR THEY INVOLVE RIGHTS HOWEVER LIMITED, FOR A BRITISH CARRIER BETWEEN HONG KONG AND PEKING

TO ANYONE VERSED IN AIR SERVICES AGREEMENTS THIS COULD ONLY IMPLY THAT HONG KONG WAS NOT (R) NOT A DOMESTIC POINT IN CHINA, AS THE. CHINESE HAVE BEEN CLAIMING IT IS. BUT FOLLOWING THIS ARGUMENT *THROUGH, IT COULD BE THAT THE CHINESE WOULD NOT (R) NOT OBJECT

TO A HONG KONG BASED CARRIER, EVEN IF THAT WERE A BRITISH CARRIER. MAYBE THIS IS REFLECTED IN THE CHINESE RELUCTANCE TO SEE THE REGIONAL ROUTES AND THE TRUNK ROUTE DEALT WITH IN ONE EXARCISE.

2. WHILE APPRECIATING THE ARGUMENTS TO THE CONTRARY, WE HAVE REMAINED OF THE VIEW THAT, EVEN BEFORE THIS DEVELOPMENT, THE BALANCE OF ADVANTAGE LAY IN LIMITING THE ASA TO THE TRUNK ROUTE AND DEALING WITH THE REGIONAL ROUTES SEPARATELY AS A LATER EXERCISE. IF ACCEPTANCE OF OPTION 'A' WOULD NOW INVOLVE A PUBLIC EXCHANGE OF STATEMENTS ON THE STATUS OF HONG KONG (AND PLEASE SEE PARAGRAPH 2 OF OUR TELNO 211 OF 6TH FEBRUARY ON OUR WISH TO AVOID DAMAGING WRANGLES ON THIS ISSUE), THEN WE MUST URGE THAT YOU FALL BACK TO OPTION 'B' OR BETTER STILL OPTION 'C' (PARAGRAPH 12 OUR TELNO 791).

CONFIDENTIAL

13. PLEASE

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