CONFIDENTIAL
3.
YAO EXPRESSED CONCERN THAT CAAC'S TACTICS WOULD BE TO STALL
ON THE IMPLEMENTATION OF THE METROPOLITAN SERVICE WHILE
PUSHING FOR THE REGIONAL ROUTES. HE EXPECTED THE BRITISH SIDE WOULD NATURALLY ATTACH IMPORTANCE TO THE LATTER WHICH WOULD THREATEN
IMPLEMENTATION OF THE WHOLE AGREEMENT. HE ADDED THAT CAAC
WOULD NOT OBJECT TO CPA BEING THE REGIONAL OPERATOR IN THE EVENT
OF THE LATTER SECURING A LICENCE FOR HONG KONG- LONDON ROUTE.
IN THIS CASE CPA WOULD GIVE AN UNDERTAKING NOT TO TRANSPORT
PASSENGERS DIRECT BETWEEN SHANGHAI AND LONDON..
Ite
! THANKED YAO FOR HIS BRIEFING AND ENCOURAGED HIM TO KEEP IN SER- TOUCH. I ADDED THAT WE WERE CONCERNED TO ACHIEVE DIRECT AIR VICES BETWEEN HONG KONG AND PEKING AS SOON AS POSSIBLE BUT COULD NOT SPEAK FOR BRITISH AIRWAYS ON ANY PARTIAL IMPLEMENTATION
OF THE AIR SERVICES AGREEMENT. YAO WILL INFORM CAAC OF HIS CONTACTS WITH US AND REINFORCE OUR PREVIOUS REQUESTS THAT FOLLOW UP TO THE AGREEMENT TAKE PLACE AS SOON AS POSSIBLE.
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conies 5647 TO CAD[BOT]
TILLS
MAGD
FED
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HK & D LOAD BRIDEGS HISS BROWN
CONFIDENTIAL