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HKK 184/2 (REF)
LA
CONFIDENTIAL
DESK OPA INDEX
PA
CONFIDENTIAL
DESKBY FCO 051500Z
FM PEKING 051315Z JUNE79
TO IMMEDIATE FCO
TELEGRAM NUMBER 531 OF 5 DUNE 79
INFO.IMMEDIATE HONG KONG
FOLLOWING FROM DELEGATION
No
(SO) MY TELNO 526: UK/PRC AIR SERVICES NEGOTIATIONS
>> *!*
1. AT THE MEETING ON 5 JUNE DISCUSSION CENTRED ROUND THE IMBALANCE
CAAC WERE SEEKING IN THE NUMBER OF REGIONAL ROUTES AND THE
ARRANGEMENTS FOR THE ROUTE BETWEEN HONG KONG AND PEKING,
2. AS REGARDS THE NUMBER OF ROUTES
DESPITE CONSIDERABLE PRESSURE
LU INSISTED THAT THE BEST OFFER HE WAS PREPARED TO MAKE WAS THAT WE SHOULD HAVE TWO ROUTES (WHICH COULD BE PEKING AND SHANGHAI)
WHILE THE CHINESE WOULD HAVE SIX. HE CLAIMED THAT A DISPARITY
OF 3-1 IN THE CHINESE FAVOUR WAS REASONABLE IN THE LIGHT OF
THEIR VIEW OF THE STATUS, OF HONG KONG SEMICOLON AND HE CONTENDED
THAT THE DISPARITY IN THE VALUES OF THE ROUTES WOULD BE A GOOD
DEAL LESS THAN THE NUMBERS SUGGESTED. IN PRACTICE THERE WERE ONLY THREE ROUTES (IE PEKING, SHANGHAI AND CANTON) WHICH WERE
LIKELY TO BE VIABLE IN THE NEAR FUTURE: THE OTHER THREE ROUTES
ON THE CHINESE SIDE WOULD THEREFORE BE COSMETIC RATHER THAN REAL,
ROGERS CONSIDERS THAT THIS IS AS FAR AS LU CAN BE PUSHED ON THIS
ISSUE SEMICOLON ALTHOH IT MIGHT JUST BE POSSIBLE TO PERSAUDE
HIM TO LET US HAVE RIGHTS TO CANTON IN THE KNOWLEDGE THAT THEY
WERE COSMETIC ON OUR SIDE AND WOULD BE OF NO COMMERCIAL VALUE.
Эм AS REGARDS THE HONG KONG - PEKING SECTOR LU SAID THAT AFTER
FURTHER CONSIDERATION CAAC HAD REAFFIRMED ITS DECISION NOT TO ENTER INTO A COMMERCIAL ARGUMENT AT THIS STAGE (PARA 2 OF TUR)
HE HAD NOT THEREFORE THOUGHT IT NECESSARY TO BRING ANY OF HIS
COMMERCIAL ADVISERS WITH HIM. ROGERS FELT IT WAS FRUITLESS
TO PRESS THIS FURTHER.
CONFIDENTIAL
/ 4. IN DISCUSSIÓN
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