TNAG-0743-FCO40-947-Relations-between-China-and-Hong-Kong-1978 — Page 171

CONFIDENTIAL

AIRLINE SHOULD BE CHANGED TO QUOTE CHINA AIRLINES (TAIWAN) UNQUOTE, SUNG SAID THAT HUANG'S REFERENCE TO THE JAPANESE FORMULA MEANT THAT

THE UK SIDE SHOULD MAKE A PUBLIC STATEMENT IN ORDER TO MAKE !

POSITION CLEAR, THERE WERE ALSO PRACTICAL DETAILS OVER THE

TIMES OF CAAC AND CAL FLIGHTS TO HONG KONG WHICH SHOULD BE ARRANGED SO AS NOT TO COINCIDE. PRIORITY SHOULD BE GIVEN TO CAAC AIR CRAFT. SUNG DID NOT THINK THAT THE UK GOVENMENT SHOULD FIND IT DIFFICULT TO MEET THESE REQUESTS.

3. CORTAZZI ASKED WHETHER HE WAS RIGHT IN REGARDING THIS AS A

MODIFICATION IN THE CHINESE POSITION. SUNG RE-ITERATED THAT WHAT WAS NEEDED WAS A PUBLIC STATEMENT, OTHER DETAILS COULD BE DISCUSSED FURTHER. THE CHINESE WERE NOT DEMANDING THE IMMEDIATE REMOVAL OF CAL INSIGNIA, MERELY THAT THE UK SHOULD CONTINUE TO STRIVE FOR THIS.

MURRAY COMMENTED THAT THERE WERE SEVERE PRACTICAL DIFFICULT-

IES IN AVOIDING CONTACT BETWEEN THE TWO AIRLINES AT KAITAK. SUNG

REPLIED THAT IT WAS NOT SO VERY DIFFICULT, BUT SIMPLY A MATTER OF ARRANGING DIFFERENT TIMES FOR THE FLIGHTS,

4. CORTAZZI SAID THAT THE UK DID NOT RECOGNISE C A L INSIGNIA NOR C A L AS REPRESENTING A STATE, AND WE HAD NO QUOTE TWO CHINA'S POLICY UNQUOTE. SUNG REPEATED THAT THE PROBLEM WOULD BE EASILY

SOLVED IF WE MADE A PUBLIC STATEMENT, AND THOUGHT THAT WE COULD

FIND MEANS FOR DOING SO. CORTAZZI REFERRED TO THE IMPORTANCE OF

CATHAY PACIFIC'S REVENUE FROM TAIPEI FLIGHTS AND THE IMPLICATIONS

FOR HONG KONG'S ECONOMY, SUNG SAID HE APPRECIATED THIS. BUT THERE

WAS NO NEED FOR MISGIVINGS : THE TAIWANESE NEEDED THE FLIGHTS TOO.

THE JAPANESE CONCERN THAT THEIR ASA WITH CHINA WOULD AFFECT

JAPAN/TAIWAN FLIGHTS HAD NOT BEEN JUSTIFIED (SIC).

5. INSTRUCTIONS WILL FOLLOW WHEN DEPATMENTS HERE HAVE CONSIDERED

THE POSITION FURTHER,

COPIES TO

MR BRYANT

DOT | CAIR DIV.

OWEN

FILES FED

*

HK YG D HARD

MAL CORTAZZ/ MR MURRAY

MISS BROWN

2.

CONFIDENTIAL