At the review, the Department of Trade (DOT)
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sought:
(a)
(i)
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(b)
TR CMU
relaxation of the limitation on BA Hong Kong to Peking; and, in order to allow BA to omit Hong Kong in due course:
(ii) BA to have available a direct routing
London to Peking across China;
(iii) BA to be allowed to combine Peking with
Tokyo with own stopover rights (footnote 2).
(i)
RR CMU
designation of CPA Hong Kong to Shanghai to be formally accepted notwithstanding CPA's services on the Hong Kong-London route;
(ii) CPA Hong Kong to Shanghai to be increased to a daily service with any aircraft;
(iii) CPA to fly Hong Kong to Peking three services a week and daily by April 1983 with any type of aircraft;
(iv) CPA to have an option to serve two other
points in China from April 1984.
In return, DoT offered to negotiate the grant of points beyond Hong Kong (CPA are agreeable to CAAC serving California, regional points beyond Hong Kong, and even London).
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No progress was made at these talks apart from an additional 140 seats for CPA on the Hong Kong/Shanghai route with corresponding additional 280 seats for CAAC. CAAC were clearly satisfied with the present position and showed no willingness to move. DOT, FCO and the Embassy Peking agree that CAAC are unlikely to be moved unless firm pressure is applied and agree that the right course is to give CAAC 12 months' notice of termination of the RR CMU.
Notice of Termination of the CMU
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The arguments in favour are:
SECRET