GR 300
CONFIDENTIAL
CONFIDENTIAL
DESKBY 310001Z PEKING
Fil FCO 301645Z MAY 79
TO IMMEDIATE PEKING
HKK 184/.2.
RECEIVED IN RADJIKT NO. 51
IND
1 JUN 1979
DESK OFHOIR
PA
143
.P.A.
TELEGRAM NUMBER 317 OF 30 MAY
INFO IMMEDIATE HONG KONG
138
ما
no 18
KH
YOUR TELS NOS 499, 500 AND 505 AND HONG KONG TEL NO 679 : UK/PRC AIR SERVICES
1. WE AGREE THAT NEGOTIATIONS SHOULD GO FORWARD, BUT FINAL
AGREEMENT SHOULD ONLY BE REACHED ON THE FOLLOWING CONDITIONS:- A) THERE SHOULD BE AN EQUAL BALANCE IN THE NUMBER OF POINTS TO BE SERVED BY BOTH SIDES ON THE REGIONAL ROUTES, AND ALL (EXCEPT, UITIL THE REVIEW TAKES PLACE, THE HONG KONG PEKING ROUTE) SHOULD
BE SERVED BY A HONG KONG BASED BRITISH CARRIER:
E) THERE SHOULD BE NO RESTRICTIONS ON THE TYPE OF TRAFFIC TO BE CARRIED BY BA ON THE HONG KONG-PEKING ROUTE. THERE IS NO OBJECTION TO ENSURING, EG BY A COMMERCIAL AGREEMENT, FOR PROTECTING CAAC'S FINANCIAL POSITION ON THIS SECTOR, BUT WE REGARD IT AS A MATTER OF POLITICAL IMPORTANCE THAT BA SHOULD BE ABLE TO CARRY
PASSENGERS OTHER THAN STOPOVER PASSENGERS BETWEEN HONG KONG AND
FEKING.
C) THERE SHOULD BE A REVIEW OF THE AGREEMENT WITHIN ONE YEAR AFTER OPERATIONS START ON. THE TRUNK ROUTE OR WITHIN TWO YEARS FROM THE SIGNING OF THE AGREEMENT, WHICH EVER IS THE SOONER. D) THE CHINESE SHOULD BE INFORMED (ALTHOUGH AT THIS STAGE IT WILL NOT BE NECESSARY TO SECURE THEIR AGREEMENT) THAT ON OUR SIDE A MAJOR OBJECTIVE OF THIS REVIEW WILL BE THAT, AFTER THE CHINESE HAD BEEN GIVEN THE CHANCE TO DEVELOP THEIR TRAFFIC, THERE SHOULD
DE A REASONABLE BALANCE OF CAPACITY ON ALL REGIONAL ROUTES FOR A HONG KONG BASED BRITISH CARRIER (SEE HONG KONG TUR)
2. FOR YOUR OWN INFORMATION AND THAT OF HONG KONG, WHILE WE WILL DO OUR BEST FOR HONG KONG AIRLINE INTERESTS WHEN THE REVIEW TAKES PLACE, (D) ABOVE IS NOT (REPEAT NOT) TO DE UNDERSTOOD AS COMITTING LS AT THIS STAGE TO BA COMING OFF THE HONG KONG/PEKING SECTOR AS
A CONSEQUENCE OF THE REVIEW.
CONFIDENTIAL
13.