CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 2222

OF 1809OOZ OCTOBER 85

INFO IMMEDIATE PEKING

VISIT OF MR RENTON

Is

CONFIDENTAL

217

нин очень

RECEIVED IN REGISTRY

2 1 OCT 1985

DESK OFFICER

REGISTRY

PA

Action Taken

BRIEFING TELEGRAM: UK/PRC AIR SERVICES TALKS

LINE TO TAKE

INDEX

1. NEED TO MEET PRESENT UNSATISFIED PASSENGER AND CARGO DEMAND AND TO PLAN TO MEET EXPECTED DEMAND IN NEAR FUTURE ON ALL MAJOR ROUTES. BOTH SIDES RECOGNISE THIS NEED, IN PARTICULAR ON PEKING AND SHANGHAI.

2. FOLLOWING FIRST ROUND OF NCONCLUSIVE TALKS IN PEKING AND SECRETARY OF STATE FOR TRANSPORT'S DISCUSSIONS IN PEKING IN SEPTEMBER, HOPE TO REACH SATISFACTORY CONCLUSION AT SECOND ROUND IN NOVEMBER IN LONDON.

BACKGROUND

3. THE UK/PRC AIR SERVICES TALKS HELD IN PEKING IN SEPTEMBER 1985 INCONCLUSIVE. BOTH SIDES RECOGNISED A NEED TO PROVIDE MORE SCHEDULED CAPACITY BETWEEN HONG KONG AND A NUMBER OF CHINESE CITIES, IN PARTICULAR PEKING AND SHANGHAI.

4. HKG'S OBJECTIVES AT THE TALKS WERE:

(A) TO REMOVE THE DISQUALIFICATION ON A HONG KONG AIRLINE

OPERATING BETWEEN HONG KONG AND LONDON FROM SERVING PEKING AND

SHANGHAI SEMICOLON

(B) TO OBTAIN TRAFFIC RIGHTS FOR HONG KONG AIRLINES TO SERVE

ADDITIONAL POINTS IN CHINA SEMICOLON

(C) TO OBTAIN AGREEMENT TO DESIGNATE MORE THAN ONE HONG KONG

AIRLINE SUBJECT TO A RESTRICTION OF ONE CARRIER PER ROUTE

SEMICOLON AND

(D) TO ACHIEVE A BALANCE OF OPPORTUNITY FOR HONG KONG AIRLINES

ON ALL ROUTES OR AT LEAST A LESS UNBALANCED SITUATION THAN

CURRENTLY OBTAINS ON THE PEKING AND SHANGHAI ROUTES.

CONFIDENTAL

15.

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