provoke a showdown over the Tianjin services as soon as possible;
concede four Tianjin services a week, accepting that they are, in fact, additional services to Peking, while maintaining that CAAC have no right to them, but use our disagreement about what the CMU means as additional justification for giving notice of termination of the CMU;
continue to grant extra services while consulta- tions continue;
concede four Tianjin services a week without giving notice of termination of the CMU.
DOT want to send CAAC and MFA a letter reiterating the position and offering consultations and then, if CAAC continue illegal flights to Tianjin after 30June, the date the present permits expire, to go for (c). But they await Hong Kong's advice.
(but now see footnote 5)
16
Hong Kong's advice needs to be related to whatever is decided on terminating the CMU.
17
If the decision favours giving notice of termination of the CMU then the choice is between option (a) and option (b). On option (a), it can be argued that if Hong Kong is prepared to face a showdown over the CMU, we should also be prepared to face a row over CAAC's illegal acts. If CAAC continue the extra flights after 30 June (and in their present mood there is no reason to suppose CAAC would do otherwise) then DCA using his legal powers would either stop passengers embarking or delay the aircraft from taking off until departing passengers are disembarked. DCA could also (if the Attorney General agreed) prosecute CAAC's representative in Hong Kong. CAAC might re- taliate against CPA aircraft in China; and CAAC might terminate the ad hoc arrangements allowing CPA to Shanghai. The con- frontation would be a miniture version of what might happen if the CMU were terminated.
18
If such a confrontation is unacceptable in political terms then option (b) seems the best alternative.
19
If the decision is against giving notice of termination of the CMU then the choice is between (c) and (d). If option (c) is adopted, it now seem likely that CAAC will be willing to hold further consultations. In the consultations
"
Footnote 5% Subsequently CAAC sent Embassy Peking a note confirming the legality of the Tianjin flights, confirming a willingness to con- sult and hoping that the British side would not take unilateral action.
SECRET