6-875
CONFIDENTIAL
DESKBY 24083CZ FCO
DESKBY 249388Z HONG KONG
FM PEKING 2401552 MAY 79
CONFIDENTIAL
125
A
Hkk 184/2
RECEIVED ANSESSIVY NO. 51
2 9 MAY 1979
DESK OFFICER
REGISTRY
Action Taken
TO IMMEDIATE FCO
TELEGRAM NUMBER 48 OF 24 MAY 79
AND TO IMMEDIATE GOVERNOR HONG KONG
FOLLOWING FROM ROGERS
INDEX
PA
По
830.113
See (124 123
R45
126
MY. 2 IPT: UK/PRC AIR SERVICES NEGOTIATIONS
1.
A.
WE NOW FACE TWO DIFFICULT AND IMPORTANT QUESTIONS:
SHOULD WE GO FOR THE BEST SETTLEMENT WE CAN GET ON
THE TRUNK ROUTE (INCLUDING SOME TEMPORARY RIGHTS FOR BA BETWEEN HONG AND PEKING) AND LEAVE THE REGIONAL ROUTES
UNTIL LATER AS THE CHINESE HAVE WANTED ALL ALONG?
B. SHOULD WE INSIST THAT ANY SETTLEMENT WHICH EXCLUDES
A BRITISH OPERATOR FROM THE HONG KONG-PEKING SECTOR, ONCE BA'S TEMPORARY CONCESSION HAS EXPIRED, IS UNACCEPTABLE?
2. AS REGARDS A ABOVE, PROVIDED WE CAN NEGOTIATE SOME IMPROVEMENTS ON WHAT THE CHINESE ARE NOW OFFERING (PARTIC- ULARLY AN EXTENSION OF THE PERIOD DURING WHICH BA COULD OPERATE WITH LIMITED RIGHTS OVER HONG KONG) WHICH WE JUDGE BE FEASIBLE, WE WOULD HAVE WITHIN OUR GRASP AN AIR SERVICES AGREEMENT FOR THE TRUNK ROUTE WHICH WOULD BE ECONOMICALLY
AND POLITICALLY ACCEPTABLE. SERVICES WOULD PROBABLY START NEXT APRIL AND A DIRECT AIR LINK WITH THE PRC WOULD HAVE BEEN FORGED. IT IS THEREFORE TEMPTING TO GO FOR A
SETTLEMENT ON THIS BASIS.
3. BUT THIS WOULD LEAVE US ENTIRELY AT THE MERCY OF THE
CHINESE AS REGARDS THE REGIONAL SERVICES FROM HONG KONG.
TO POINTS IN THE PRC. NOW THAT WE HAVE SMOKED THEM OUT,
IT IS PLAIN THAT WE WOULD GET A VERY ROUGH DEAL. THERE
WOULD BE NO QUESTION OF A BRITISH AIRLINE (WHETHER HONG
YONG BASED OR OTHERWISE) OPERATING BETWEEN HONG KONG AND
PEKING AFTER THE EXPIRY OF THE TEMPORARY CONCESSION TO BA
SEMI COLON AND EVEN THE OFFER OF OTHER POINTS (PARA 3 OF
OUR TELNO 470 MIGHT WELL BE WATERED DOWN BY PSEUDO-POLITICAL
ARGUMENTS SUCH AS THOSE ALREADY ADVANCED REGARDING THE
HONG KONG-PEKING ROUTE. MEANTIME CAAC WOULD HAVE GOT
THEMSELVES FIRMLY ESTABLISHED ON THE HONG KONG PEKING
ROUTE IN EXCHANGE FOR BA'S TEMPORARY RIGHTS.
CONFIDENTIAL
14.
THE