GR 520
CONFIDENTIAL
FM PEKING Ø808392 JUN 79
TO IMMEDIATE FCO
HKK 184/2 (158
CONFIDENTIAL
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GHY NO. ST
DESK OR
INDEX
PAA86
TELEGRAM NUMBER 540 OF 8 JUNE 79
INFO IMMEDIATE HONG KONG
FOLLOWING FROM DELEGATION
No
OUR TELNO 533: UK/PRC AIR SERVICES NEGOTIATIONS
1. AT TODAY'S SESSION LU WAS AT HIS MOST FRUSTRATING.
2.
HAVING STARTED OFF BY SAYING HOW IMPORTANT IT WAS FOR BOTH
SIDES TO TRY TO REACH AGREEMENT AND TO MAKE COMPROMISES, HE WENT ON NOT ONLY TO INDICATE ANUNWILLINGNESS TO MOVE ON ALL THE POINTS
WHICH HAD BEEN LEFT OPEN FROM THE MEETING REPORTED IN TUR, BUT
ALSO TO WITHDRAW ON CERTAIN VITAL ISSUES.
3. THE MOST IMPORTANT OF THESE WAS THE UNDERSTANDING THAT WHEN BA
CEASE TO OPERATE THE TRUNK ROUTE OVER HONG KONG ANOTHER BRITISH
CARRIER CAN TAKE OVER OPERATIONS ON THE HONG KONG-PEKING SECTOR
UNDER ARRANGEMENTS TO BE MADE AT THE TIME, LU CLAIMED THAT HE
HAD NVEVER ACCEPTED THIS POSITION: IT WAS MERELY WHAT WE WERE SEEKING
ROGERS REMINDED HIM THAT SINCE THE DINNER PARTY WITH SHEN TU ON
25 MAY ALL THE DISCUSSIONS HAD BEEN BASED ON THIS UNDERSTANDING.
IF IT WERE NOW WITHDRAWN HE FELT SURE THE WHOLE EDIFICE WOULD
TUMBLE DOWN.
4.
LU ALSO BACKTRACKED ON THE CAPACITY TO BE MOUNTED BY BA. HE STARTED OFF BY SAYING THAT THERE SHOULD BE ONLY ONE FREQUENCY
A WEEK: AS AGAINST THE TWO B747'S A WEEK ON WHICH ALL THE PREVIOUS
DISCUSSIONS HAD BEEN BASED. HE THEN SUGGESTED THAT THE WHOLE
QUESTION OF FREQUENCY AND CAPACITY ON THE TRUNK ROUTE SHOULD
BE LEFT OVER FOR SUBSEQUENT DISCUSSION. ROGERS REPLIED THAT YOU COULD NOT BE EXPECTED TO TAKE A DECISION ABOUT THE
ACCEPTABLILITY OR OTHERWISE OF THE PACKAGE WITHOUT KNOWING WHAT
THE POSITION WAS ON THIS.
5. AT THE END OF A LENGTHY SESSION LU EVENTUALLY AGREED TO QUOTE SUBMIT THESE TWO ISSUES TO HIS GOVERNMENT UNQUOTE AND TO LET ROGERS
HAVE HIS ANSWER AS SOON AS POSSIBLE. LU UNDERTOOK TO USE HIS VERY
BEST EFFORTS TO SECURE AGREEMENT TO OUR WISHES IN THESE RESPECTS
AND HINTED THAT IN THE LIGHT OF ROGERS' COMMENTS HE EXPECTED TO
BE SUCCESSFUL.
CONFIDENTIAL
10. A3