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CONFIDENTAL

335

GRS 1979

CONFIDENTIAL

A PEKING 260107Z JUL 79

DESKBY FCO 26090AZ HONG KONG 268409Z

TO IMMEDIATE FCO

икки

84/2

27 JUL 1979

ESK C

TELEGRAM NUMBER 679 OF 25 JULY

AND TO IMMEDIATE HONG KONG.

See 226

FOLLOWING FROM DELEGATION.

224

YOUR TELNO.424:

UK/PRC AIR SERVICES NEGOTIATIONS.

1. AT A TETE A TETE ON 25 JULY ROGERS TOLD LU OF THE DECISION

IN PARA 1 OF YOUR TUR. HE EXPLAINED THAT IN OUR VIEW THE LAST OFFER HE HAD MADE ON THIS POINT (IE AN AMALGAM OF A AND B IN PARA 1 OF YOUR TELNO.399) WAS A VERY REASONABLE ONE. AFTER CAREFUL CONSIDERATION BOTH IN LONDON AND HONG KONG YOUR FIRM

CONCLUSION WAS THAT WE COULD NOT GO BEYOND THAT OFFER. HE HOPED THAT THE CHINESE WOULD RECONSIDER THEIR POSITION IN THE LIGHT OF THIS AND WOULD RECOGNISE THAT OUR OFFER MET BOTH THEIR POLICY AND

PRACTICAL NEEDS.

2. LU SEEMED GENUINELY SORRY AT THIS NEWS, SINCE THE PREPAR-

ATORY WORK ON THE DRAFTING AND TRANSLATING HAS BEEN PUSHED WELL

NHEAD AND HE HAD CLEARLY BEEN BANKING ON SIGNING UP ON 26 JULY. HIS FIRST INCLINATION WAS TO SAY THE CHINESE POSITION, ALSO,

WAS IMMOVABLE: BUT AFTER SOME PERSUASION BY ROGERS HE AGREED

TO REVIEW CAREFULLY WITH HIS COLEAGUES THE POSSIBILITY OF THEIR

ACCEDING TO OUR VIEW. HE ADDED THAT THIS WAS LIKELY TO TAKE SOME

DAYS.

3. AS REGARDS THE HEATHROW/GATWICK QUESTION, WE FOUND YOUR

INSTRUCTIONS UNCLEAR, SINCE ALTHOUGH PARA 2 OF YOUR TUR SAID THAT. YOU WERE WILLING TO ACCEPT THE FORMULA IN PARA 2 OF OUR TELNO.659, YOU DID NOT SAY WHETHER OR NOT YOU WERE PREPARED TO ACCEPT THE

ALTERNATIVE FORMULA IN PARA 6 OF OUR TELNO.654 AND, IF NOT, WHY

NOT HOWEVER FOR THE REASONS EXPLAINED IN PARAS BELOW WE COULD

NOT AFFORD TO WAIT EVEN A DAY FOR A FURTHER EXCHANGE OF TELEGRAMS

ION THIS

CONFIDENTAL

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