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CONFIDENTIAL
FM PEKING 040155Z JUN 79
TO IMMEDIATE FCO
TELNO 523 OF 64 JUN
INFO IMMEDIATE HONG KONG
FOLLOWING FROM DELEGATION:
MY TELNO 521: UK/PRC AIR SERVICES NEGOTIATIONS
1
DESK OFFICE??
INDEX
do
A FURTHER MEETING RETWEEN ROGERS AND LU WAS HELD ON SATURDAY AFTERNOON (2 JUNE).
2.
LU SAID THAT HE HAD CONSULTED HIS COLLEAGUES AND THEY FOUND
IN RESPONSE TO OUR LATEST POSITION QUOTE UNACCEPTABLE UNQUOTE.
ROGERS' QUESTIONS HE SAID THEY WERE PREPARED TO DO A BALANCED DEAL WITH US ON ALL PARTS OF THE TRUNK ROUTE EXCEPT THE HONG KONG- PEKING SECTOR. HOWEVER THEIR CONCEPT OF FAIRNESS DIFFERED VASTLY FROM OURS IN RESPECT OF HONG KONG. IN THEIR VIEW THE REGIONAL
THEY THEREFORE ROUTES WERE THEIR OWN DOMESTIC (CABOTAGE) ROUTES. WANTED NOT ONLY THE GREAT MAJORITY OF THE ROUTES BUT ALSO THE GREAT MAJORITY OF THE TRAFFIC ON THEM. HE ALSO DENIED THAT IT HAD BEEN THEIR INTENTION TO OFFER BA INTERNATIONAL STOPOVER RIGHTS AND SAID ALL THEY HAD HAD IN MIND WAS QUOTE OWN STOPOVER UNQUOTE. !N SHORT, WHAT THEY WERE NOW OFFERING WAS THAT BE SHOULD HAVE OWN STOPOVER RIGHTS ON THE SECTOR HONG KONG-PEKING AND THAT IN RETURN CAAN SHOULD HAVE UNRESTRICTED RIGHTS ON THREE ROUTES INTO HONG KONG. ONE OF THESE WOULD BE PEKING (SEMI COLON) THE OTHERS PROBABLY SHANGHAI AND CANTON.
3.
IN VIEW OF YOUR INSTRUCTIONS, ROGERS DID NOT ENQUIRE WHETHER THE OTHER OPTIONS PREVIOUSLY OFFERED FOR THE REGIONAL ROUTES (EG 3 TO 7, SEE PARA 5 OF TELNO 494) WERE STILL OPEN: BUT HE
PRESSED LU HARD ON THE ILLOGICALITY OF BEING WILLING TO CONCEDE FULL RIGHTS ON OTHER REGIONAL ROUTES BUT NOT BETWEEN HONG KONG AND PEKING. LU COULD NOT PROVIDE AN EXPLANATION BUT STUCK TO HIS STATEMENT THAT CAAC WERE NOT PREPARED TO GIVE FULL RIGHTS BETWEEN HONG KONG AND PEKINO
CONFIDENTIAL