SECRET
Рас
40529 2
(51
GRS 287
SECRET
DESKBY 070100Z
FM FCO 061800Z DEC 82
TO IMMEDIATE HONG KONG
7[m
Mn Joure
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TELEGRAM NUMBER 1028 OF 6 DECEMBER
INFO PEKING
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YOUR TELNO 1420: UK/PRC AIR SERVICES
HKK 184/1
1. AT BRIEFING SESSION FOR TALKS COMMENCING 7 DECEMBER THE OBJECTIVES PROPOSED IN YOUR TUR WERE GENERALLY ACCEPTED EXCEPT AS FOLLOWS. YOU HAVE ACCEPTED THAT IT IS ESSENTIAL TO RESOLVE THE DISPUTE ABOUT TIANJIN SERVICES, BUT THIS CANNOT BE DONE WITHOUT PROVIDING AGREED ADDITIONAL CAPACITY BETWEEN HONG KONG AND PEKING FOR THE SUMMER OF 1983 AT THE LATEST. FORCEFULLY THAT THESE RIGHTS SHOULD BE EXERCISED BY CPA. FACED WITH A CHOICE BETWEEN PEKING RIGHTS FOR CPA AND THE CON- TINUED USE OF A HONG KONG ROUTING BY BA, WE SHALL OBLIGE BA TO
MAKE WAY.
WE SHALL ARGUE
IF
2. WE HAVE THEREFORE AGREED WITH CPA AND BA THAT WE WILL SUGGEST TO LU THAT CAAC AND CPA SHOULD BEGIN DISCUSSIONS, PREFERABLY THIS WEEK, ON THE COMMERCIAL TERMS ON WHICH CPA MIGHT SERVE HONG KONG- PEKING, IN THE FIRST INSTANCE WITH BA RETAINING THEIR PRESENT RIGHTS ON THE ROUTE MEANWHILE, TO AVOID GIVING THE CHINESE THE OPPORTUNITY TO PLAY ONE AIRLINE OFF AGAINST ANOTHER, BA WILL NOT ENGAGE FOR THE TIME BEING IN ANY FURTHER DISCUSSIONS WITH CAAC. ONLY IF IT IS APPARENT AFTER SUCH DISCUSSIONS THAT TH CHINESE ARE NOT PREPARED TO ACCEPT CPA INTO PEKING ON ANY REASONABLE TERMS WILL WE EXPLORE WITH THE CHINESE (IF NECESSARY IN A SECOND ROUND OF INTERGOVERNMENTAL TALKS) THE SCOPE FOR ALLOWING BA TO CARRY SOME OF THE TRAFFIC RATHER THAN CONCEDING IT ALL TO CAAC WITH OR WITHOUT OUR FORMAL APPROVAL. APPROACH SEEMS TO US CONSISTENT WITH THE ASSESSMENT YOU MADE IN THE LIGHT OF EXCO'S ADVICE LAST JUNE, AND IN PARTICULAR WITH THE REFERENCE TO BRITISH (INCLUDING HONG KONG) CARRIERS IN PARAGRAPH 2 OF YOUR TELNO 646.
PYM
THIS
71
Afalın
See (52 153
DIST:
LIMITED
MAED
HKGD
FED
MR ADAMS
MR DONALD
SECRET
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