OCUPIDENTIAL
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Continuation Sheet No.
File No.
of the undertakings given in 1979 to require BA to find
some other way of serving Peking, even if this meant in
practice that it might be uneconomic for them to do so.
13 However I recognise that you and the Governor of
Hong Kong may not want to adopt a strategy which might
lead to a trial of strength in the early months of 1984
when other negotiations might be at a critical stage.
If so I think we could make something out, of the second
option. The main problem is that BA have only limited
capacity available to carry local traffic between Hong
Kong and Peking and their services would necessarily
be that much more liable to delay than services
originating in Hong Kong. I cannot pretend that the
authorities in Hong Kong will be enthusiastic about
this. option either, since it favours BA rather than
Cathay, but it would at least get a UK airline a share of Hong Kong/Peking traffic for the first time, which
must be a step in the right direction.
14 In taking a view on these objectives you will want
to bear in mind that one of the issues in the wider
negotiations is HMG's role; after 1997, in talks with
third countries about air services into and out of
Fong Kong. I doubt if it will help our long term
objectives in this area if the Chinese are confirmed
Form SS/29A
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