CONFIDENTIAL
4. HAD THE REGIONAL NEGOTIATIONS BEEN KEP SEPARATE FROM THE BEGINNING WE BELIEVE THEY COULD HAVE BEEN DEALT WITH SATISFACTORILY
IN ISOLATION FROM THE TRUNK ROUTE. NOW HOWEVER THAT REGIONAL SERVICES HAVE FORMED A MAJOR PART OF THE DISCUSSIONS WE AGREE THAT IF NEGOTIATIONS ON REGIONAL ROUTES ARE LEFT OVER TILL
LATER WE COULD FIND OURSELVES IN A WEAK POSITION. TO COVER THIS, WE THINK IT WOULD BE NECESSARY TO WRITE THE PRINCIPLE OF RECIPROCITY FOR REGIONAL SERVICES INTO THE MAIN AGREEMENT (OR A SIDE LETTER) WITH DETAILS TO BE SETTLED LATER. IN THE MEANTIME IF THE CHINESE APPLY FOR CHARTERS DCA WOULD BE PREPARED TO CONSIDER THESE ON OUR EXISTING RULES AND WE WOULD ENCOURAGE CQUNTER BIDS BY A LOCAL CARRIER IF ONE WAS INTERESTED.
IF NO LOCAL CARRIER WERE INTERESTED, WE WOULD SEEK TO MAKE CLEAR TO THE CHINESE THAT ANY APPROVAL WOULD BE ON THE ASSUMPTION OF RECIPROCITY IF AND WHEN A HONG KONG BASED BRITISH CARRIER WANTED
TO OPERATE RECIPROCAL SERVICES.
5. WE SEE DANGERS IN SUGGESTING TO THE CHINESE FORMS OF
POLITICAL STATEMENTS ON THE STATUS OF HONG KONG. THEY WOULD BE UNLIKELY TO ACCEPT THE FORMULATION IN PEKING TELNO 479 WITHOUT ADDING SOMETHING ABOUT THEIR VIEWS THAT HONG KONG IS CHINESE TERRITORY. SHOULD THEY DO SO THIS WOULD IMMEDIATELY RAISE THE
PROBLEM OF HOW HMG SHOULD REACT. WE BELIEVE IT SHOULD BE A MAJOR OBJECTIVE IN THE DISCUSSION TO AVOID GETTING ENTANGLED IN
QUESTIONS ABOUT THE STATUS OF HONG KONG.
MACLEHOSE
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HKJGD
MR. BUTLER
MR CORTAZZI
MR MURRAY
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COPIES TO
FICE
HONG KONG GOVERNMENT OFFICE
LONDON
CONFIDENTIAL