CONFIDENTIAL

HKK 184/2

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HOME PANO. 51

2 1 MAY 1979

CIS DY

COFIDENTIAL

CISZDY 216372

FM PEKING 21/350Z MAY 72

TO IMEDIATE

CO

INDE

TILNO 46A OF 21 MAY

No

£28.5 J

INFO MONG YONG (FOR GOVERNOR AND SCARFE)

WK/PRC AIR SERVICES TALKS

1.

PROCRESS WAS DISAPPOINTINGLY SLOV ON THE FIRST TWO DAYS OF THE TALKS, WHEN AT CHINESE INSTANCE ONLY TWO HALF DAY SESSIONS MIRE HELD. FURTHER PRIVATE CONVERSATION ON 20 MAY BETWEEN ROGERS AND LU, LEADER OF CHINESE DELEGATION, UDICATED THAT SOME TOUGH BARGAINING ON THE TRUNK ROUTE LIES AHEAD,

FURTHER

OPENING SESSION ON 19 MAY BEGAN WELL WITH BUTUAL EXPRESS- TONS OF COODWILL AND DESIRE TO CONCLUDE AN ASA DURIKA THESE

TALKS.

LU COMMENTED THAT THE POLITICAL PROBLEMS (IE CONCERNING THE AIR LINK BETWEEN HONG KONG AND TAIWAN) HAD BEEN SETTLED. HE PARTICULARLY WELCOMED OUR COOPERATION IN ALLOWING CANTON-HONG KONG SERVICES TO START: HE AGREED THAT THE TAL'S SHOULD PROCEED WITH DISCUSSION OF OBJECTIVES AND PROBLEMS BEFORE EXAMINATION OF

THE DRACT TEXT OF THE ASA.

2. ROGERS SAID OUR FIRST. OBJECTIVE WAS TO ESTABLISH TRUNK ROUTES FOR DA AND CAAC. WE WOULD LIKE SHANGHAI AS AN ADDITIONAL FOINT IN THE PRC AND WERE WILLING TO CONSIDER AT ADDITIONAL FOINT FOR THEM IN THE UK. WE WANTED TO AMEND OUR INTERMEDIATE POINTS IN THE 1973 TEXT AND WERE WILLING TO DISCUSS SPECIFIC INTERMEDIATE POINTS FOR THE CHINESE. WE WOULD ALSO LIYE TO DISCUSS SERVICES RETVEEN HONG KONG AND POINTS IN THE PRO. VE APPRECIATED. THAT THE CHINESE WISHED TO DISCUSS THERE AFTER THE TRUN ROUTE SERVICES

AND AID THE ASA, OUT THERE WAS SOME OVERLAP BETWEEN THE TRUN

REGIONAL ROUTES.

CONSDENTIAL

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