ļ
MKK |84|1
ник
GR 500
SECRET
JESKBY 071230Z
SECRET
PA
AF9/12
FM HONG KONG 071045Z DEC 82
TO IMMEDIATE FCO
TELEGRAM NUMBER 1431 OF 7 DECEMBER
INFO PRIORITY PEKING
YOUR TELNO 1328: UK/CHINA AIR SERVICES
THE PRINCIPAL OBJECTIVE SET OUT IN OUR TELNO 646 WAS TO SECURE AN EFFICIENT NETWORK OF AIR SERVICES BETWEEN HONG KONG AND CHINA. WE HAVE ARGUED SUBSEQUENTLY THAT THE ONLY EFFECTIVE WAY OF ACHIEVING THIS WAS TO SEEK FORMAL DESIGNATION FOR CPA ON HK/SHANGHAI AND RIGHTS FOR CPA ON HK/PEKING, AND THAT IMPLANTING IN CAACS MINDS THE IDEA THAT BA MIGHT CONTINUE INDEFINITELY ON HK/PEKING RAN COUNTER TO THIS OBJECTIVE.
2. WHILE WE HAVE ACCEPTED THAT THE DISPUTE OVER TIANJIN MUST BE RESOLVED, WE ATTACH HIGHER PRIORITY TO OUR OBJECTIVE OF SECURING PERMANENT DESIGNATION FOR CPA ON SHANGHAI AND ON PEKING. MOREOVER, WE HAVE CONFIRMED THAT WE SHOULD NOT CONCEDE ANY FURTHER RIGHTS UNLESS WE GET SOME SATISFACTION OF OUR OWN OBJECTIVES.
3. WE DO NOT ACCEPT THAT BA'S WITHDRAWAL FROM HONG KONG/PEK ING SHOULD HANG UPON A QUOTE CHOICE UNQUOTE BETWEEN PEKING RIGHTS FOR CPA AND CONTINUED USE OF A HONG KONG ROUTING BY BA. WE SEE BA'S UNEQUIVOCAL WITHDRAWAL AS THE PREREQUISITE FOR SECURING PEKING RIGHTS FOR CPA. IF THE CHINESE ARE GIVEN GROUNDS FOR SUSPECTING THAT HMG PERCEIVE A CHOICE IN THIS MATTER, LU WOULD UNDOUBTEDLY SEEK TO EXPLOIT THIS.
4. DESPITE THE AGREEMENT BETWEEN CPA AND BA (FIRST SENTENCE OF PARA
2 OF TELEGRAM UNDER REFERENCE), WE THINK THAT THE CPA/CAAC DISCUSSIONS WOULD BE FUTILE IF THEY COMMENCED ON THE BASIS THAT BA SHOULD RETAIN THEIR PRESENT RIGHTS ON THE ROUTE. IT IS DIFFICULT TO SEE HOW CPA COULD SECURE A REASONABLE SHARE ON THIS
BASIS.
See 153
SECRET
/ 5. WE WOULD
52.