CONFIDENTIAL
PEKING
COPY HONG KONG GOVERNOR
Your Tel 203: UK/PRC Air Services
In the light of CAAC views reported in your TUR and the
substantial and systematic abuse of the Tianjin/Nanjing
permits reported in Hong Kong Telegram Allot 32 of 19 April
we have been considering what action to take under Article 4
of the ASA in granting or refusing new permits from
1 May.
it
Although it is arguable that we should not renew the
permits at all or restrict each permit to one service a week in each direction to carry the genuine Tianjin/Nanjing
traffic because such action might appear to be the only way
to prevent further infringements of our regulations,
would be more normal in a dispute of this kind to
allow time for consultation under Article 4(2) of the ASA
aiming to use such consultations to extract concessions
of benefit to the UK airlines whose interests are affected.
Moreover the CAAC letter already points to consultations
as the appropriate course.
we
Subject to your views and those of Hong Kong we therefore
propose that you should reply to CAAC's letter of 4 April
in the terms of the draft in MIFT.
1
NR
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