316
108
205
CRS 550
CONFIDENTIAL
CONFIDENTIAL
See 225
HKK 184/2
WIN RUTKY NO. 2 5 JUL 1979
DESK JIC
DBY 250100Z
FM FCO 241725Z JUL 79
TO IMMEDIATE PEKING
TELNO 424 OF 24 JULY
INFO IMMEDIATE GOVERNOR HONG KONG
20
IN
A
по
рь
816
224
YOUR TELNOS 654, 655, €59 661 AND HONG KONG TELNO 1037: UK/PRC AIR SERVICES NEGOTIATIONS.
1. IN THE LIGHT OF HONG KONG TELNO 1037 WE CANNOT AUTHORISE YOU TO SIGN AN AGREEMENT ON OPTION A USING THE FORMULA IN PARA 4 OF YOUR TELNO 654. WE RECOGNISE THAT THE PRINCIPAL DIFFERENCE BETWEEN THE BASIC PACKAGE WHICH WE APPROVED IN TELNO 365 AND THE PRESENT SITUATION CONCERNS THE DESIGNATION OF THE CARRIER FOR THE REGIONAL SERVICES. IT IS DISAPPOINTING THAT THE CHINESE HAVE NOT SO FAR ACCEPTED THE REASONABLE AND PRACTICAL FORMULA WHICH WE PUT FORWARD
IN PARA 1 OF OUR TELNO 399. WE THINK IT WRONG IN PRINCIPLE TO GO FURTHER, THAN THIS. YOU SHOULD MAKE ONE LAST EFFORT TO PERSUADE THEM TO ACCEPT THE FORMULA. IF THEY ARE ADAMANT IN THEIR REFUSAL, YOU SHOULD PROCEED TO A DEAL ON THE BASIS OF OPTION C. THE REMAINING
INSTRUCTIONS IN PARAS 3 AND 4 OF TELNO 399 ARE STILL VALID. INSTRUCTIONS
HEATHROW/GATWICK QUESTION.
2. YOU CAN SETTLE ON THE BASIS OF THE FORMULA IN THE THIRD SENTENCE OF PARAGRAPH 2 OF YOUR TELNO 659 ALTHOUGH YOU SHOULD SEEK TO MOVE THE CUT OFF DATE TO 30 SEPTEMBER FOR A JOINT DECISION TO BE REACHED (1.E. BEFORE CHAIRMAN HUA'S VISIT). WE REGARD THIS AS ONLY A
TEMPORARY FACE SAVING DEVICE FOR THE CHINESE, AND WE WISH TO AVOID ANY RISK OF BEING ACCUSED OF BAD FAITH. YOU SHOULD THEREFORE REMIND
LU THAT MINISTERS IN THE NEW GOVERNMENT ARE REVIEWING THE AIRPORTS
POLICY. YOU SHOULD ADD THAT A STATEMENT IS EXPECTED SOON WHICH
WILL ALMOST CERTAINLY REAFFIRM THE REQUIREMENT FOR NEW CARRIERS
STARTING SERVICES TO LONDON TO USE AN AIRPORT OTHER THAN HEATHROW. WE DO NOT WISH TO PRESENT THE CHINESE WITH FAIT ACCOMPLI TO USE ·
GATWICK BEFORE THEY HAVE HAD A CHANCE TO SEE FOR THEMSELVES THE
SITUATION AT LONDON'S AIRPORTS. WE ARE PREPARED TO GIVE THEM TIME
TO COME TO THEIR OWN CONCLUSIONS. IF HOWEVER THEY THEN FEEL THAT THEY CANNOT ACCEPT OPERATIONS TO GATWICK, THEY SHOULD RECOGNIZE THAT THEY WILL NOT BE PERMITTED TO GO TO HEATHROW. WE SHOULD
THEREFORE
CONFIDENTAL