CONFIDENTIAL

GRS 475

CONFIDENTIAL

FM

G KONG 210911Z JUN 79

TO IMMEDIATE F C O

TELEGRAM NUMBER 832 OF 21 JUNE

ININ

#KK184/2

B+R

UN 1979

$25.6

INFO IMMEDIATE PEKING, ROUTINE HONG KONG GOVERNMENT OFFICE

LONDON.

MY TELNO 642: HONG KONG/GUANGZHOU SCHEDULED SERVICES.

1. Z M LIU AND B C WONG, SUB MANAGERS OF CNAC IN HONG KONG, CALLED ON KEEP (DCA HONG KONG) ON 20 JUNE. THEY WERE ACCOMPANIED BY R H LI OF NCNA WHO ACTED AS INTERPRETER.

2. LIU SAID THAT WHILST THE PRESENT GUANGZHOU/HK SCHEDULED SERVICE WAS NOT VERY PROFITABLE, THEY WERE ANXIOUS TO SEE A SERVICE CONTINUE BEYOND THE END OF JUNE (WHEN THE TOP EXPIRES) BECAUSE IT WAS A USEFUL SERVICE AND THE PUBLIC WISHED IT TO CONTINUE. HE

WENT ON TO SAY THAT CNAC WOULD LIKE PERMISSION TO OPERATE ONE

''CHARTER'' SERVICE PER DAY UNTIL 31 DECEMBER 1979.

3. KEEP CAREFULLY SPELT OUT GENERAL POLICY ON NON-SCHEDULED

SERVICES TO AND FROM HONG KONG. THAT IS, THAT IT WAS NORMALLY

THE PRACTICE TO START FROM AN ESTABLISHED LEVEL OF SCHEDULED

SERVICES BASED ON THE NORMAL DEMAND OF ALL SECTORS OF THE TRAVELLING

PUBLIC IN DETERMINING THE NEED FOR NON-SCHEDULED SERVICES. THE

PRESENT POSITION WITH CHINA IS THAT THERE IS NO FIRM BASIS

OF SCHEDULED SERVICES IN EXISTENCE.

4. KEEP THEN EXPRESSED THE HOPE THAT THE SCHEDULED SERVICES BETWEEN HONG KONG AND GUANGZHOU WOULD CONTINUE AS THESE WERE MORE

APPROPRIATE THAN CHARTERS TO SERVE THE ACTUAL DEMAND, KEEP ACCEPTED THAT FOR A VARIETY OF REASONS, INCLUDING PLANNING, EXTENSION ON A MONTH-TO-MONTH BASIS WAS UNSATISFACTORY. HE POINTED OUT, HOWEVER, THAT AUTHORITY FOR THE GRANT OF SCHEDULED SERVICES RESTED WITH THE UK, AND THAT TALKS BETWEEN HMG AND THE PRC

ON AN ASA WERE CURRENTLY TAKING PLACE IN PEKING. AS AN EXTENSION OF THE TOP WAS VERY MUCH TIED UP WITH THE OUTCOME OF THE

CONFIDENTIAL

/ CURRENT

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