GR 798
CONFIDENTIAL
DESKBY BOTH 1511032
FM PEKING 150975Z JUNE 79
CONFIDENTIAL
Akk184/2
19 JUN 1979
де
ПБ
TO IMMEDIATE FCO
TELEGRAM NUMBER 563 OF 15 JUNE 79
AND TO IMMEDIATE HONG KONG
INE
ло No 189/
X
See
180
173A
HONG KONG TELNO 791:
UK/PRC AIR SERVICES NEGOTIATIONS
1. IN PARAS 2 AND 3 OF THEIR TUR, HONG KONG ARGUE THAT THEY
ARE LIKELY TO SECURE A BETTER BALANCED DEAL ON THE REGIONAL
SERVICES WHEN THE CHINESE HAVE BUILT UP THEIR INFRASTRUCTURE AND
HAVE A BETTER IDEA OF THE DEMAND. THE QUESTION HONG KONG DO NOT
ANSWER, HOWEVER, IS HOW THEY WOULD PROPOSE TO PREVENT THE
CHINESE OPERATING ALL OF THE SERVICES BY APPLYING TO OPERATE
GENUINE CHARTERS, PSEUDO CHARTERS OR EVEN SCHEDULED SERVICES. IF THE CHINESE WERE TO PRESS HARD FOR THESE, PAST PERFORMANCE SUGGESTS HONG KONG WOULD ARGUE AND WE SHOULD BE FORCED TO AGREE,'
THAT IN THE INTERESTS OF SMOOTH RELATIONS AND TO ENSURE THAT
HONG KONG REMAINED THE MAJOR DROPPING-OFF POINT FOR BUSINESS
AND TOURIST TRAVEL TO CHINA WE OUGHT TO AGREE. HONG KONG
TELEGRAMS 1351 AND 1356 OF NOVEMBER 1978 AND 447 OF APRIL
1979 ARE RELEVANT. HONG KONG APPEAR TO BELIEVE THAT THE CHINESE WILL IN EFFECT OFFER SOMETHING FOR NOTHING IN THE FUTURE.
I BELIEVE THEY ARE OFFERING SOMETHIN ON THE REGION NOW MAINLY
IN EXCHANGE FOR A TRUNK ROUTE AGREEMENT. THIS IS WHY THE MFA
WERE PREPARED TO PUT SOME PRESSURE ON CAAC TO AGREE, FOR EXAMPLE,
THAT A HONG KONG BASED CARRIER SHOULD HAVE THE RIGHT TO OPERATE
TO PEKING WHEN BA COME OFF THE SECTOR - SOMETHING THAT ON
COMMERCIAL GROUNDS THEY HAD NO REASON TO CONCEDE. HONG KONG.
CANNOT BE EXPECTED TO DO BETTER ON THEIR OWN.
2. I APPRECIATE THAT THE CHINESE ARE LOOKING TO HONG KONG BASED
FIRMS FOR TECHNICAL COOPERATION, BUT THEY WILL MANAGE TO OBTAIN
WHAT THEY WILL REQUIRE WITHOUT GIVING ANYTHING AWAY IN TERMS
OF RECIPROCAL AIR SERVICES. SO FAR AS TOURISM IS CONCERNED,
THEY ARE ALREADY GETTING ALL THE HELP THEY WANT. AS REGARDS
COMPUTERISED BOOKING SYSTEMS, IF CPA REFUSE THEY CAN GO TO
JARDINES. IF BOTH REFUSE THEY CAN GO OUTSIDE HONG KONG.
CONFIDENTIAL
IF
/ IN