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6. THE ADVANTAGES OF OPTION B ARE AT LEAST AN OBVIOUS. BALANCE ON TRUNK ROUTE AND IN RESPECT OF REGIONAL POINTS. HONG KONG
Y
WILL STILL PROVIDE SOMETHING OF A GATEWAY INTO CHINA, EVEN THOUGH TO USE IT WILL INVOLVE PICKING UP FLIGHTS AT CANTON. PUBLICLY, HONG KONG WILL NOT BE SEEN AS HAVING PAID A PRICE T) SECURE BENEFITS FOR B.A. INDEED THE FACT THAT B.A. WOULD SECURE LESS THAN WHAT HAD BEEN OBTAINED UNDER THE 1973 AGREEMENT COULD BE CONSTRUED AS B.A. GIVING UP A BENEFIT IN ORDER TO ESTABLISH A REGIONAL ROUTE BETWEEN HONG KONG AND CANTON FOR A HONG KONG BASED CARRIER. THERE IS A PROVISION FOR A REVIEW WHICH CAN BE USED TO REOPEN THE ISSUE OF REGIONAL ROUTES AND MEANWHILE THERE WILL BE A CHANCE FOR INTERESTED PARTIES IN HONG KONG TO DEVELOP THEIR RELATIONS WITH THE CHINESE: AND THERE IS ALWAYS A POSSIBILITY THAT PRAGMATISM WILL PREVAIL WITH THE CHINESE, PARTICULARLY IF PRESSURES FOR DIRECT SERVICES BETWEN HONG KONG AND POINTS IN CHINA BUILD UP WITH THE DEVELOP- MENT OF GREATER ECONOMIC LINKS,
7. NEVERTHELESS, OBTION B WOULD STILL PROVIDE FOR AN IMBALANCE IN CAPACITY ON THE CANTON ROUTE (BUT SEE PARAGRAPH 8 BELOW). WE WILL STILL HAVE THE DISADVANTAGE THAT HONG KONG TRAFFIC
WOULD HAVE TO RELY ESSENTIALLY ON CHINESE TRANSPORT TO REACH INTERIOR CITIES IN CHINA. AS THE CHINESE HAVE NOT AGREED TO THE MANDATE OR TERMS FOR THE REVIEW, WE SHALL HAVE TO RELY HEAVILY ON A CHANGE IN THEIR ATTITUDES MEANWHILE. FINALLY, THE QUALITY OF SOME FLIGHTS IN CABOTAGE SERVICE MIGHT STILL BE
AFFECTED..
S. BUT A MODIFICATION OF OPTION B MIGHT ASSIST TOWARDS THE LESSENING OF AT LEAST ONE OF THESE DISADVANTAGES. IF THE CHINESE COULD AGREE TO EQUAL CAPACITYAMN THE HONG KONG/CANTON ROUTE WE WOULD FIND IT PERFECTLY ACCEPTABLE THAT H.M.G. AGREE NOT TO DESIGNATE A BRITISH CARRIER FOR A GIVEN PERIOD OF TIME, SAY FIVE YEARS, ON THAT ROUTE.
9. AFTER CAREFULLY WEIGHING THE ARGUMENTS FOR AND AGAINST OPTIONS A AND B, WE PREFER OPTION D, PARTICULARLY IF THE MODIFICATION WE HAVE PROPOSED TO THE LATTER 15 ACCEPTABLE.
1. IN RESPECT OF OPTION C WE TAKE A SLIGHTLY DIFFER VIEW FROM THAT EXPRESSED IN PARAGRAPH 9 OF PEKING TELNO 552. WE
3
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I THINK.
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