CONFIDENTIAL
APS 1300
CONFIDENTIAL
TESK 140938Z
FM HONG KONG 140851Z JUN 79
1734
HKK 184 3
RECEIVED KASSGTW NO. 51 15 JUN 1979
DESK OFFICIS
LADEX
PA
TO IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELNO.791 OF 14 JUNE,
Ma
1879.6.
See (154)
MSA
176
180
167
FO IMMEDIATE: PEKING,
PRIORITY: HONG KONG GOVT OFKICE LONDON,
YOUR TELMO.401 AND PEKING TELNO.552 AND 553 :
GOT
PUK/PRG AIR SERVICES NEGOTIATIONS,
1. AS WE NOTE THAT B.A ARE STRONGLY OPPOSED TO OPTION D, WE DO
NOT PROPOSE TO CONSIDER THIS OPTION FURTHER,
2. AS WE SEE IT, THE MAIN CONSIDERATION BETWEEN OPTION A AND OPTIONS B OR C IS WHETHER THE BARGAINING POSITION ON REGIONAL
·ROUTES WOULD IMPROVE OR DETERIORATE WITH THE PASSAGE OF TIME.
THE PEKING VIEW IS THAT THE CHINESE ARE PREPARED TO CONCEDE A
SHARE OF THE REGIONAL TRAFFIC NOW BECAUSE THEY WISH TO REACH AN AIR SERVICES AGREEMENT BEFORE PRENIER HUA'S VISIT. SEEN FROM HERE, WE HAVE THE IMPRESSION THAT IT MIGHT BE POSSIBLE TO GET A BETTER DEAL ON THE REGIONAL ROUTES IF THEY COULD BE LEFT ON ONE SIDE FOR FURTHER TALKS AT A LATER DATE. THIS IMPRESSION HAS BEEN CONFIRMED BY HONG KONG MEMBERS OF THE DELEGATION AT THE TALKS IN PEKING. THEIR ASSESSMENT IS THAT
THE CHINESE HAVE NOT HAD TIME TO DO THEIR HOMEWORK ON THESE ROUTES SEMI-COLON THAT THEY LACK THE INFRASTRUCTURE AND
EXPERTISE TO BUILD UP TRAFFIC FROM HONG KONG TO POINTS IN CHINA SEMI-COLON AND UNTIL THEIR DEVELOPMENT PLANS, FOR EXAMPLE IN RESPECT OF HOTELS, ARE FURTHER ADVANCED, THEY DO NOT KNOW WHAT THE DEMAND 10 LIKELY TO BE. IF A DECISION ON REGIONAL ROUTES COULD BE DELAYED, WE FEEL HONG KONG INTERESTS WOULD HAVE A CHANCE TO IMPROVE THEIR RELATIONS WITH THE CHINESE WHO MAY WELL MEED CONSIDERABLE TECHNICAL ASSISTANCE FROM HONG KONG (FOR EXAMPLE ON PROMOTING TOURISM, COMMUNICATIONS, COMPUTERISED BOOKING SYSTEMS AND INTER-LIMING ARRANGEMENTS).
CONFIDENTAL
CERTAINLY CPA,
170 THE