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WERE TO DESIGNATE ON THE REGIONAL ROUTES. WHILE THERE WOULD BE
SCOPE FOR IMPROVEMENTS SUBSEQUENLTY, WE SHOULD BE STARTING FROM A POSITION OF INFERIORITY ON THE REGIONAL ROUTES AND IT WOULD
BE DIFFICULT IF NOT IMPOSSIBLE TO PULL LEVEL. HOWEVER, THIS REFLECTS THE CHINESE CONVICTION THAT THEY ARE DOING US A
FAVOUR BY ALLOWING A BRITISH CARRIER ON TO THE REGIONAL ROUTES (WHICH IN THEIR EYES ARE THEIR DOMESTIC ROUTES AND WHICH THEY ARE AT PRSENT OPERATING OVER CANTON). IT ALSO REFLECTS OUR EXTREMELY WEAK BARGAINING POSITION OVER THIS ISSUE IN HONG KONG.
12, IN AIR SERVICES TERMS, THE WORST FEATURE OF THE CURRENT PROPOSALS IS THE DAMAGE THEY ARE LIKELY TO DO TO THE RELATIONS
BETWEEN BRITISH AIRWAYS AND CPA. THE LATTER (WHO REGARD THEM- SELVES AS THE NATURAL CHOICE FOR THE REGIONAL ROUTES) ARE
DISSATISFIED WITH THE OPPORTUNITIES THAT THE CURRENT PROPOSALS
WOULD GIVE THEM AND WOULD WISH TO BE ABLE TO START SERVICES TO PEKING, ALSO, WITHOUT DELAY. THEY WOULD THEREFORE WISH US
TO PRESS FOR DOUBLE DESIGNATION ON THE HONG KONG-PEKING SECTOR
AT THIS STAGE. KEEP SUPPORTS THIS VIEW. AP ART FROM THE FURTHER
COMPLICATIONS THAT DOUBLE DESIGNATION WOULD BRING IN ITS TRAIN
ESPECIALLY IF ONE OF OUR CARRIERS HAD FULL RIGHTS WHILE THE
OTHER WAS LIMITED TO STOPOVER TRAFFIC) ROGERS DOES NOT THINK IT
REALISTIC TO SUPPOSE THAT THE CHINESE COULD BE PERSUADED TO GRANT
IT IN THEIR PRESENT MOOD. THE EMBASSY AND FCO REPRESENTATIVES
IN THE TEAM GO FURTHER THAN THIS AND CONSIDER THAT IT WOULD BE
UNWISE TO PRESS THE CHINESE FOR A CONCESSION WHICH GOES WILL
BEYOND THE CONCESSIONS THE AMBASSADOR SOUGHT ON 24 MAY (OUR
TELNO 493). TO DO SO WOULD ALIENATE THE SYMPATHY WE HAVE NOW
GAINED. GRATEFUL YOUR INSTRUCTIONS ON THIS POINT.
13. AT A FURTHER MEETING WITH LU TODAY, ROGERS WILL SEE WHAT IMPROVEMENTS HE CAN GET IN THE PACKAGE BUT WITHOUT TOUCHING
ON THE POINT IN PARA 12 ABOVE PENDING YOUR INSTRUCTIONS.
14. THE AMBASSADOR WILL BE TELEGRAPHING SEPARATELY.
CRADOCK
FILES
MAXD
FED
[ECPIES SENT TO CAD! DOT]
Lecries
HKIGD
LEGAL ADVISERS
MR CORTAZZI MR BUT LER MR MURRA
URRAY
从一
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