Brief No 6
CONFIDENTIAL
E China
Line to take
12
We welcome CPA's plans to start services between Hong Kong and Shanghai by the end of January if possible. We have informed the Chinese that CPA are the UK's designated carrier for the route.
Background
13 CPA have now been licensed by the Hong Kong ATLA to operate between Hong Kong and Shanghai, which is the only regional service immediately available to the UK under the air services arrangements concluded with the Chinese. Now that we have designated them it is up to them to settle the administrative and technical details with CAAC, who are the Chinese aviation authorities and airline combined. With the exception of Canton-Hong Kong, we have not yet received an approach from the Chinese about the introduction of regional services by. CAAC. According to the agreement, they could not in any case start a Peking-Hong Kong service until services commence between London and Peking. So far CAAC are being uncooperative in not being willing to discuss details with BA; they appear to be sulking at the decision that they should operate to Gatwick. We are putting pressure on them through our Embassy in Peking.
F
Australia
Line to take
14 The Secretary of State can welcome the bencfit of lower fares for consumers as a consequence of ICAP.
Background
15 Hong Kong, both Government and CPA, felt that the Australian ICAP philosophy was put into practice largely for the benefit of Australians wanting cheap travel to Europe and for Gentas. They were not convinced of its relevance or appropriateness to the regional routes between Hong Kong and Australia and resented those aspects of it which disadvantaged Hong Kong eg the loss of fifth freedom rights on the Hong Kong-Perth route and the virtual abandonment of the route in consequence. However they have got cheap fares to Australia out of it and despite some earlier misgivings, some slight advantage over Qantas on the main route to the E Coast of Australia. Nevertheless, there is still a slight lingering resentment in Hong Kong that they were dragged unwillingly by the UK and Australia into the ICAP pond.
G Concorde
Line to take
16
The Secretary of State might say that the possible extension of