12
195
CONFIDENTIAL
FM HONG KONG 040654Z JUN 79
TO IMMEDIATE PEKING
TELNO.89 OF 4 JUNE,
INFO PRIORITY F C 0.
AIR SERVICES.
CONFIDENTIAL
RECENTLO
43
MKK 184/2 (48
EN: NO.
NO. 226
WOLX
No.
PA
1. NCNA HAVE TOLD A LOCAL BUSINESSMAN WITH WHOM THEY HAVE CLOSE
CONNECTIONS, BUT WHO IS NOT INVOLVED WITH ANY AIRLINE, THAT THE
AIR SERVICES NEGOTIATIONS ARE DEADLOCKED AND WILL BREAK UP ON WEDNESDAY. A MIDDLE RANKING MEMBER OF NCNA (TAN GAN) HAS BEEN SUMMONED TO PEKING IN ORDER, HE HAS HINTED, TO ADVISE ON HOW
HONG KONG ASPECTS OF THE PROBLEM SHOULD BE TACKLED IN THE NEXT
ROUND.
2. NCNA TOLD THEIR CONTACT THAT THERE WERE TWO MAIN PROBLEMS (1) CHINESE FEARS THAT BRITISH AIRWAYS WITH LARGER AIRCRAFT AND EXCLUSIVE RIGHTS HONG KONG TO LONDON WOULD IN EFFECT GET A MONOPOLY ON THE PEKING/LONDON ROUTE: AND
.
(11) CONFUSION BETWEEN DISCUSSION OF TRAUNK AND REGIONAL ROUTES.
THE CHINESE ADMITTED THAT THEY THEMSELVES HAD GOT INVOLVED IN .DISCUSSION OF REGIONAL ROUTES, BUT BELIEVE THIS WAS A BAD MISTAKE AND CLAIM THAT IT WAS CONTRARY TO THE ORIGINAL AGREEMENT ON THE
TALKS:
3. PLEASE DO NOT PLAY BACK TO THE CHINESE ANY OF THE ABOVE.
THE SOURCE WOULD BE OBVIOUS TO THEM.
MACLEHOSE
FILES
MAED.
PED. HK&GD. MR BUTLER MR CORTAZZI MR MURRAY
[ COPIES SENT TO CAD/DOT]
CONFIDENTIAL