UK/China.

1981 imbalance

CAAC

CPA

Mw.thansa af Pa

100

HKGD

Seven to me by

Suuris.

Earnings US$35.5M

42 scheduled services per week from 7 cities. 1700 extra flights during the year.

2 scheduled services per week to Shanghai.

UK requests:

(i)

(ii)

(iii)

(iv)

Earnings US$3M.

Designation of CPA for services to SHA and all future HKG/China services.

increase in CPA SHA services to 4 p.w. April 1982/daily by April 1983.

3 services p.w. for CPA to PEK; daily by 1983.

2 other points in China from April 1984.

UK prepared consider increased rights for CAAC to and through HKG.

Present situation

All efforts to negotiate an improvement in overall balance on these lines have met with a blank refusal. DOT view appears to be that improvement can only be achieved if 12 months notice is given of regional CMU, and this view seems to be supported by FCO, Embassy Peking, and Civil Aviation Dept in Hong Kong.

HITH 184||

RECEIVED IN REY NO. 51

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