RECANT SAMT

CAAC is to build on the proposals which BA have been exploring

informally and on their own initiative in Peking so that

they might carry a significant quota of local traffic in exchange for additional Hong Kong/Peking services by CAAC. Looking further ahead, if BA can establish the right to a share of local Hong Kong/Peking traffic, this should improve the chances

of CPA being allowed to assume such rights at a later date.

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