WR 900
CONFIDENTIAL
FM PEKING 2200272 MAY 79
TO FLASH FCO
CONFIDEN MAL
TELEGRAM NUMBER 476 OF 22 MAY 79
IR
AND TO FLASH GOVERNOR HONG KONG
Аск
1kk 184/2/10.51
RECEIVED Ma
2 3 MAY 1979
DESK OSPITA
INDEX no
PA
J23.5 s
MY TELNO 467 AND MIPT: UK/CHINA AIR SERVICES (NÉGOTÌATION: FOLLOWING FROM DELEGATION
1. THE RATS HAD GOT AT THE PACKAGE OVERNIGHT.
120
122
118
A
2. WHEN LU MET ROGERS FOR A FURTHER INFORMAL DISCUSSION
THIS MORNING, HE SAID THAT HEHAD HAD A HARD TIME WITH HIS COLLEAGUES OVER THE ALTERNATIVES OUTLINED IN PARA 7
OF TUR. THE ESSENTIAL FEATURE OF THE CHINESE POSITION
AS COMPARED WITH THE LINE HE HAD TAKEN YESTERDAY WAS
THAT THEY WERE NOW NOT PREPARED TO ACCEPT OPERATIONS
BETWEEN HONG KONG AND PEKING BY ANY REPEAT ANY- BRITISH
AIRLINE WITH THE SOLE EXCEPTION OF A TEMPORARY
CONCESSION OF LIMITED RIGHTS IN ORDER TO MAKE BA'S TRUNK ROUTE SERVICES VIABLE UNTIL THERE WAS SUFFICIENT TRAFFIC TO SUSTAIN THEM ON A DIRECT ROUTEING WHICH AVOIDED HONG KONG.
IN RESPONSE TO ROGERS' QUESTIONS HE INDICATED THAT THE MOST
ME MIGHT BE ABLE TO PERSUADE HIS COLLEAGUES TO ACCEPT
WAS INTERNATIONAL STOPOVER AND CONNECTING RIGHTS FOR A PERIOD
OF ABOUT ONE YEAR.
3. THE ONLY RIGHTS OF A PERMANENT MATURE THAT THE CHINESE
MIGHT BE PREPARED TO CONCEDE FOR A BRITISH CARRIER BETWEEN
HONG KONG AND POINTS IN CHINA WOULD BE TO PERHAPS TWO OR
THREE CITIES OTHER THAN PEKING. HE RELUCTANTLY CONCEDED
THAT THESE NIGHT INCLUDE SHANGHAI. ALL OTHER SERVICES WOULD EE OPERATED AS A MONOPOLY BY CAAC.
WHEN PRESSED FOR AN EXPLANATION LU REFERRED TO THE QUOTE SPECIAL SITUATION UNQUOTE OF HONG KONG AND SAID THAT UN- DESIRABLE POLITICAL INFERENCES MIGHT BE DRAWN FROM AN OPERATION
EY A BRITISH AIRLING BETWEEN HONG AND THEIR CAPITAL PEKING,
THESE WOULD NOT BE SO MARKED IN RESPECT OF THE TEMPORARY AND LIMITED RIGHTS HE WAS OFFERING FOR BRITISH AIRWAYS, ON 13 RESPECT OF OPERATIONS TO OTHER CHINESE CITIES. ROGERS COMMENTED DISINGERVOUGLY THAT HE DID NOT SEE HOW ANY DIFFERENT
INFEREMIES MIGHT BE DRAWN BY AN OPERATION BY CAAC PETVEEN PERING AND HONG KONG THAT FROM AN OPERATION BY A BRITISH
LECRATOR ON THE GAME ROUTE.
/S. BOGRES
LOGY IN PATAG