CONFIDENTIAL #32
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Economic Services Branch Progress Report
1 August 1981 - 31 October 1981
Part I
Subject
Air Services
1. UK/China Air
Services Agreement
Purpose
To implement the ASA and Regional Routes CMU.
Progress made and present position
Next quarter target
(i) At the talks in early August in London, it was agreed that :
(a) CPA's twice weekly B707 flights
to Shanghai would continue for 6 months w.e.f. 1 November 1981, with full 154-seat capacity for each flight (which would also give CAAC additional capacity on their 6 Trident services) being considered monthly in the light of demand;
(b) in exchange for CPA being
allowed to continue its Shanghai service (sub-para. (a) above), CAAC would be permitted to mount services to HK from two or three more cities in addition to those already
allowed under the RR CMU; and
(c) a review of trunk and regional
air services arrangements would be held in Peking in March or April 1982.
To determine, in conjunction with DoT, what the British strategy and tactics at the review talks should be.
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CONFIDENTIAL #Z
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