In Sheet The
(CONTINUE. TYPING HRC)
File No.
review we could try to rotain this alongside
local rights for Cathay Pacific perhaps in
exchange for allowing CAAC to operate one or
two services a week via llong Kong to London
with rights.
(ii) working within the framework of the 1979
arrangements we should seek increased services
for Cathay to Shanghai, in line with market
growth,, and we should try to obtain local rights
for BA between Hong Kong and Poking in exchange
for additional services on the came routes by
CAAC.
change part
ARG-SUP
11 I have to add that we cannot simply sit still and do
nothing until the wider negotiations have reached some
conclusion. The pressure of demand for Hong Kong/Peking
Services is such that CAAC are already meeting it to a
smell extent by operating services from Hong Kong to
Tianjin (near Peking) and extending these up to Peking as
2 domestic sector. Nevertheless they sell them as Hong Kong/Poking serviced and only 20% of the passengers
get off at Tianjin. We have told the Chinese that this
practice is contrary to the spirit of the 1979 arrangements
which control capacity to Peking and Shanghai, and we have
accordingly written into their permits an explicit
condition which they break by operating in this way. We
keve allowed them to get away with this practice so far
Trading necoliations, but if we do not noy do worthing.
、,,,:
1
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