CONFIDENTIAL
connection between this demand
and the
unresolved difficulties in the air services
negotiations between China and Japan.
which he dis
j. Sir John Addis was instructed to reply on
29 August) that HMG were extremely disappointed
and concerned that the Chinese appeared to wish
to raise a new point which was not discussed
during the air service negotiations (although
there was ample opportunity then to do so), nor embodied in the agreement which we had
initialled in good faith. Mr Wang tried to
dodge the issue by implying that if we and/or
the Japanese persuaded the Taiwanese to remove
the nationalist insignia from their aircrafts
t
Lines
and alter its name from China Airefts to
something else the problem would be solved.
Sir John Addis properly ruled this out of court
as totally impossible.
mong
4. If the Chinese press their point we shall
be faced with the choice of tomiga to
acceding to the Chinese demand or of dropping
air services agreement altogether. may wish to reassure the Governor that our
in staat case would be
Mr Royle
inclination is to drop the air services
$¿to
agreement. If we gave way to the Chinese
the possible ramifications are too many to
discuss in detail here, tIt would probably
with little prospect of a satisfactory
out come
NOTHING TO BE WRITTEN IN THIS MARGIN
mean sacrificing the profitable services which to about £8 milhon
(the CPA's earnings
OLL
itris route
CPA now run to Taiwan for the dubious financial
return to BOAC of operating a prestigious but
anyear)
/unprofitable
2 CONFIDENTIAL
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