CPS 10

CONFI NTIAL

FM HONG KONG 148913Z JUN

CONFIDENTIAL

DESKBY 147938Z

TO IMMEDIATE F.C.0.

TELEGRAM NUMBER 792 OF 14 JUNE, 1979.

FOR MACLAREN FROM JEAFFRESON.

FOLLOWING PERSONAL FOR GOVERNOR.

173A

MIPT: UK/PRC AIR SERVICES NEGOTIATIONS.

(13)

12

HKK184/2

15 JUN 1979

DESK OPP**

DCX

по

PA

829.1

NO.

1. OUR CONCLUSIONS HINGE ON THE ARGUMENT IN PARA 2 OF TUR.

OUR VIEW THAT THE BALANCE OF ADVANTAGE STILL LIES IN SEPARATING

THE REGIONAL FROM THE TRUNK ROUTES HAS BEEN CONFIRMED BOTH IN REPORTS BY KEEP (DCA) FROM PEKING AND BY MILES (GENERAL MANAGER,

CPA) WHO HAS NOW RETURNED TO HONG KONG,

2. MILES REPORTS LI SHU FAN (SENIOR DEPUTY DIRECTOR, CAAC)

AS SAYING TO HIM THAT WHILE CHINA WANTED AGREEMENT ON THE TRUNK

ROUTE, IS ALSO HAD TO SATISFY THE REQUIREMENTS OF BRITISH AND

CHINESE RESIDENTS IN HONG KONG. THE LATTER COULD BEST BE

ACHIEVED BY LEAVING HONG KONG ON ONE SIDE FOR FURTHER TALKS

IN LONDON, HE HINTED THAT THE CHINESE DID NO (R) NOT WANT

AN UNSATISFACTORY REGIONAL SETTLEMENT AND HE STRESSED THE

IMPORTANCE OF GOOD PELATIONS BETWEEN CHINAS REGIONAL AUTHORITIES

AND HONG KONG, LI INDICATED THAT HE MIGHT BE VISITING HONG KONG

SCON.

3. THESE HINTS ARE DIFFICULT TO INTERPRET. BUT AS REPORTED

IN PARA 2 OF TUR, MILES HAD THE FIRM IMPRESSION THAT THEY WERE

MOTIVATED BY THE LACK OF PREPARATION ON THE CHINESE SIDE FOR

A REGIONAL SETTLEMENT.

CONFIDENTIAL

/4.MILES

}

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