TNAG-0330-FCO40-366-Visit-of-Parliamentary-Under-Secretary-of-State--Anthony-Roy-1972 — Page 92

CONFIDENTIAL

MR ROYLE'S VISIT TO HONG KONG :

11

15 NOVEMBER 1972

BRIEF NO 9

HONG KONG/CANTON AIR LINK

1. This question must be considered in the context of the

inter-governmental Air Services Agreement which we hope to

negotiate with the Chinese in the near future. A preliminary

meeting was held between DTI officials and the CAAC Delegation

which visited the United Kingdom in September. The DTI team

received the firm impression that the Chinese wanted an Air

Services Agreement but that they were not prepared to discuss

substantive points during the preliminary meeting.

2. The Hong Kong-Canton link is not the first priority for us

in negotiating an ASA. Our first priority should be a BOAC route

to Peking, although BOAC's first preference is to enter China via

Hong Kong. Whichever way one considers it Hong Kong considerably

complicates the question of the Air Services Agreement. First

the Chinese regard Hong Kong as an integral part of China. The

CAAC delegation told the DTI that in their view we would have two

points in China, ie Hong Kong and another point. In discussions

with the Canadians the Chinese have said that routeings between

Hong Kong and points in China would be regarded as internal

routeings. We shall clearly face problems on this point when

negotiations begin.

1

CONFIDENTIAL

14.