SECRET
HONG KONG GOVERNOR
COPY PEKING
UK/PRC AIR SERVICES
Our assessment of the situation following talks with the Chinese recorded in FCO Telegram 514 to Peking is as follows:-
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(i) We are no nearer to getting Cathay's designation for
services to Shanghai and eventually other points in
China accepted. Nor can we expect to achieve formal
designation so long as we are trying to negotiate within
the framework of the 1979 arrangements which specifically
exclude an airline which also operates services to London.
CPA now have an opportunity to explore with CAAC what
arrangements might be acceptable for a Hong Kong based
airline to operate services between Hong Kong and Peking
but the chances of reaching agreement at an acceptable
price do not look good, especia
(ii)
(iii)
H
Lu made it clear that even if BA's service was not routed
via Hong Kong he would still regard services to Peking by
a Hong Kong based airline as constituting a second trunk
route to London.
We remain concerned that failure to resolve the Tianjin
issue before the 1983 summer operating season will
permanently undermine our ability to obtain reciprocal
Hong Kong/Peking services for any UK airline.
2
In preparation for the next round of negotiations, and
particularly if we have to assume that all more forceful means of
persuasion are still ruled out, it will be important to use every
opportunity that presents itself to bring diplomatic pressure to