CONDEN JA
V
FCS/82/202
LORD COCKFIELD
MAED CPS,
PS/Lord Belstead,
PS/Mr. Rifkind,
Mr. Donald,
Mr. Adams,
HKGD
FED
HKK 184.1
50
PA
HB
1.
↑ AF9/12
(46
UK/China Air Services
Thank you for your letter of 25 November about the
forthcoming air services negotiations to be held with the
Chinese. I am grateful to you for taking the trouble to
spell out in such detail this complex issue.
2.
I agree that we must make a major effort to secure
a greater share of the available market for British airlines.
I also see the force of the argument that in order to be
sure of persuading the Chinese to negotiate a more
equitable regime we might need to threaten to abandon the
1979 arrangements. However, having obtained the view of
the Governor of Hong Kong and the Ambassador in Peking, I
do not think that we should go that far. You will be aware
of course of the important discussions with the Chinese on
the future of Hong Kong. I believe that to take a very
tough line over air services at this juncture would be
linked in the Chinese mind to our position on the much
wider question of the future status of Hong Kong. They will
not wish to be seen, particularly now, to be going further
than they have already in conceding that Hong Kong is
foreign territory for air services purposes. In these
circumstances, we could not assume that the Chinese would
not react badly in the wider negotiations. Moreover the
Chinese control the air traffic and air space over China
CONFIDENTIAL
/and