CONFIDENTIAL #3
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2
Air Services
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* (4)
E3/China Air Services 1greant
Replaceme it airport
To seek to revive a rovion of the Agree- ment in ceneral and the "egional Routes Confidential Meno- randum of Understanding in particular.
To consider whether an international airport to replace Kai ak should be constructed.
A first round of talks to review the Agreement took place in Peking from 12 to 18 March. With regard to regional services, the talks only achieved extra capacity on the Pong Kong/Shanghai route, with CPA and CAAC obtaining 140 and 280 more seats respectively for the 1982 summer season. In view of the disappointing outcome of the talks, certain options are presently under consider- ation by NC and "KG.
(a) As regards Chek Lan Kok:
(i) The airport master plan,
together with reteoro- logical, fauna, flora, and marine environment studies have continued satisfactorily.
(ii) The completion of the
airport master plan will be delayed, however, owing to a 2-month slippage in the civil engineering design study.
In conjunction with FCO and PoT (who will be consulting Ministers), to leter- mine overall Britis strategy.
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CONFIDENTIAL
To ensure that the progress is male these studies.
"o determine what he done to minimi the effects of the slippage, and to take appropriate action.
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CONFIDENTIAL
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