CONFIDENTIAL
UNTIL AGREED TRAFFIC FIGURES ARE ACHIEVED.
WE WOULD BE UNHAPPY
ABOUT THE USE OF SUCH A FORMULATION BECAUSE IT WOULD GIVE NO CERTAINTY AS TO TIME AND WOULD BE PREDICATED UPON IMPONDERABLES
ABOUT TRAFFIC GROWTH, IN ANY EVENT, TO BE ABLE TO COMMENT MEANINGFULLY WE WOULD REQUIRE PRECISE INFORMATION AS TO WHAT IS
ON OFFER.
4.
WHILST WE AGREE THAT THE CURRENT TALKS INVOLVE MUCH MORE THAN TECHNICAL AND COMMERCIAL CONSIDERATIONS, WE HOPE THAT IT IS STILL THE INTENTION TO ADHERE TO THE INSTRUCTIONS CONTAINED IN YOUR TELNO.307 TO PEKING THAT CAAC SHOULD NOT REPEAT NOT HAVE AN INDEFINITE ADVANTAGE ON ALL OTHER REGIONAL ROUTES.
5.
WE SHOULD LIKE TO REPEAT THAT ANY AGREEMENT SHOULD PROVIDE FOR THE FIRM ACCEPTANCE OF THE PRINCIPLE OF RECIPROCITY AND FOR THE CLEAR OPPORTUNITY FOR A HONG KONG BASED BRITISH CARRIER TO
OPERATE RECIPROCAL SERVICES BETWEEN HONG KONG AND POINTS IN CHINA.
6.
OUR READING OF REPORTING TELEGRAMS SUGGESTS THAT THE MAIN THRUST OF THE NEGOTIATIONS HAS THUS FAR BEEN DIRECTED AT THE TRUNK ROUTE. AS WE HAVE POINTED OUT IN FARA.4 IN OUR TELNO.638,
IT IS NOW NECESSARY TO SECURE A PATENTLY EQUITABLE DEAL ON REGIONAL SERVICES AS WELL AS ON THE TRUNK ROUTE SINCE THE TWO HAVE BEEN FUSED IN THE NEGOTIATIONS.
7. WE CANNOT UNDERSTAND THE RATIONALE BEHIND LU'S ARGUMENT THAT THE TEMPORARY OPERATION OF THE HONG KONG/PEKING SECTOR BY
B.A SHOULD LEAD TO A CAAC MONOPOLY ON SHANGHAI, A DE FACTO CAAC MONOPOLY ON CANTON, PLUS A DE FACTO MONOPOLY ON HONG KONG ORIGINATING TRAFFIC TO PEKING IF THE POSSIBILITY SET OUT IN PARA.2 ABOVE TURNS OUT TO BE CORRECT.
8. WE HAVE JUST RECEIVED PEKING TELNO.494 AND WILL BE COMMENTING ON IT AS SOON AS POSSIBLE.
MACLEHOSE
Filis
MAED FED HKIGO
LEGAL ADVISERS MR Buthie
MR CORTAZZ1
MR HURDAY.
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H.K.GO. LONDON,
CONFIDENTIAL