+

Shanghai and Peking which are embodied in the Confidential

Memoranda of Understanding of 1979, 1981 and 1982.

3

We look forward to the resolution of this matter as soon as

possible. Until the matter is resolved however we cannot agree

to increases in the services operated by CAAC between Hong Kong

and Nanjing and Tianjin, and the permits for these services have

been restricted accordingly. In order to assist CAAC, and for

the convenience of passengers, we are prepared to approve extra

sections to Tianjin twice a week until 6 June but, unless the

matter can be resolved by consultation and mutual agreement in

the meantime, not thereafter. It is for this reason that we are

inviting you to let us know which two of CAAC's four services

they propose to operate after 6 June.

4

The United Kingdom is of course ready to enter into further

consultations in an effort to resolve this matter at the earliest

possible date, and I am available for talks in London between now

and 6 June if you would find this helpful.

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