Mr Gray MAED
C67/1
File
9
CONFIDENTIAL
HKK 18411
RECEIVED IN ROSARY NO. 51
0 APR 1032
DESK OPIUM
INDEX
PA
MAGISTRY
PRC AIR SERVICES
No
CAE
23/4 160223/4
1. The Governor of Hong Kong has commented on the proposal to give the PRC 12 months' notice of our intention to terminate the CMU - Hong Kong Telegram No 363.
2. HKGD have said that we would need to consider the implications of doing this in the light of the Prime Minister's visit and the Governor's views. The latter has now made clear that he has strong reservations.
3. I share the Governor's concern that we risk the coincidence of a showdown with the PRC on air services with negotiations on the highly delicate question of the future of Hong Kong. As I understand it, the DOT believe that there need not be a showdown because the Chinese will not wish to see the end of the regional services. It is very doubtful whether we can be sure of this. In my view therefore we should support the Governor and advise against any notice of termination. I realise the problems in air service terms but we cannot afford a major row which might prejudice discussions on the future. Indeed, if we were to go ahead and give notice of termination now, we might find no alternative but to back down later, thus weakening our air service.position much more.
4.
My comments on the points in paragraph 7 of the Hong Kong telegram are therefore as follows:
a) We should only proceed if we are absolutely sure that
the Chinese will agree to a satisfactory arrangement before a showdown on regional services is reached.
b) If nevertheless we were to proceed we should include
the Hong Kong / Canton service; we would be inconsistent if we did not.
c) This is a telling point. A row with CAAC could indeed
harm cooperation on the replacement airport. The decision on it might well have therefore to be postponed. We could be strongly criticised if this happened.
19 April 1982
cc Mr Donald
Mr Elliott FED
R D Clift
Hong Kong and General Department
CONFIDENTIAL