MELABV (7)

CONFIDENTIAL

capacity) between Chinese and Hong Kong carriers on this

route.

By the end of the talks, an agreement appeared to be possible along the above lines, with the British side offering in return willingness to accept the designation of three new Chinese airlines

operating services to Hong Kong. However, time constraints made it impossible to reach final agreement. Both sides agreed to consider

a further amount of talks in November or December, at which

agreement could be clinched.

CONFIDENTIAL

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