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WAS BEING PAID BY HONG KONG FOR NO EXTRA BENEFIT TO B.A. VEN IF
FURTHER LIMITED RIGHTS WERE SECURED FOR B.A, THE PRICE WOULD STILL
BE CONSIDERED EXCESSIVE. SO WE ATTACH GREAT IMPORTANCE TO B.A
VACATING THE REGIONAL ROUTE BETWEEN HONG KONG AND PEKING AS SOON AS POSSIBLE, PREFERABLY WITHIN TWO YEARS, BECAUSE THE ARGUMENTS THAT THIS SECTION IS ESSENTIAL TO THE VIABILITY OF THE TRUNK SERVICE
IS ONE WHICH NEITHER WE NOR THE HONG KONG PUBLIC FIND EASY TO
ACCEPT.
5. IN THE CIRCUMSTANCES, WE ATTACH GREAT IMPORTANCE TO THE
PROVISION FOR A REVIEW. THIS PROVISION SHOULD INCLUDE A TIGHT
DEFINITION OF WHEN THE REVIEW SHOULD BE. WE WOULD PREFER THE
REVIEW TO TAKE PLACE IN AS SHORT A TIME AS POSSIBLE AFTER THE SIGNING OFCTHE AGREEMENT, SAY, BETWEEN ONE AND TWO YEARS AS
SUGGESTED IN PARA.4 OF PEKING TELNO.499. PROVISIONS BASED ON
REACHING A GIVEN LEVEL OF TRAFFIC OR ON THE STARTING OF SERVICES
ON THE VARIOUS ROUTES (PARA.2 OF PEKING TELNO.500) COULD POSSIBLY
BE OPEN TO ABUSE WITH THE RESULT THAT WE WOULD IN EFFECT BE
LANDED WITH A VIRTUALLY INDEFINITE TRANSITIONAL PERION. ONE AIM OF THE REVIEW SHOULD BE THAT, HAVING GIVEN THE CHINESE A CHANCE TO DEVELOP THEIR TRAFFIC, THERE SHOULD BE A BALANCE OF CAPACITY ON ALL ROUTES FOR A HONG KONG BASED BRITISH CARRIER.
MACLEHOSE
FILES
MAED FED HKIGD
SEAD
LEGAL ADVISERS
MR BUTLER MR CORTAZZI, MR MURRAY MISS BROWind
[COPIES SENT TO CAD/ DOT]
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