TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 54

GPS 270

CYPHER/CAT A

* PEKING 030655Z

CONFIDENTIAL

CONFIDENTIAL

TO ROUTINE FCO TELNO 388 OF 03 JUL.

RFI HONG KONG.

I agree entireling with X. We need

380

take no adren with

we hear

from HK

PA

YOUR TELMO 238: NON SCHEDULED FLIGHTS BETWEEN CHINA AND

HONG KONG

See

393

1.. A JARDINE MATHESON DELEGATION HEADED BY DAVID NEWBIGGING IS IN PEKING AT PRESENT AND HAS HAD WHAT HE DESCRIBES AS VERY USEFUL DISCUSSIONS WITH THE CAAC ABOUT FUTURE NON-SCHEDULED FLIGHTS, ALTHOUGH MANY DETAILS REMAIN TO BE SETTLED, HE BELIEVES THAT THE CHINESE HAVE AGREED IN PRINCIPLE TO A SERIES OF SCHEDULED CHARTERS DURING THE AUTUMN CANTON FAIR (IE FROM 15 OCTOBER TO 15 NOVEMBER). NEWBIGGING CLAIMS THAT THE BRITISH AIRWAYS REPRESENTATIVE IN HONG KONG IS FULLY IN THE PICTURE TO THE EXTENT OF BEING. PREPARED TO CONSIDER PROVIDING AN AIRCRAFT FOR THIS SERVICE.

2. NEWBIGGING HAS ALSO DISCUSSED WITH THE CHINESE LONGER TERM POSSIBILITIES SUCH AS DIRECT TOURIST CHARTER FLIGHTS FROM HONG KONG TO KWEILIN AND OTHER TOURIST SPOTS.

3.

THE POSSIBILITY OF FREQUENT CHARTER FLIGHTS, AMOUNTING ALMOST TO A REGULAR SERVICE, BETWEEN HONG KONG AND PARTS OF CHINA MUST HAVE IMPLICATIONS FOR OUR AIR SERVICES AGREEMENT. IT COULD BE ARGUED THAT TO AGREE TO THESE FLIGHTS WOULD ERODE OUR BARGAINING POWER VIS-A-VIS THE CHINESE. HOWEVER I TAKE THE VIEW THAT WE SHOULD REGARD THESE LATEST DEVELOPMENTS, WHICH WE CAN SCARCELY VETO, IN A A. POSITIVE LIGHT AND SEEK TO OBTAIN FROM THEM WHATEVER ECONOMIC BENEFIT WE CAN. WE MAY ALSO BE ABLE TO USE THE PRESENCE OF CAAC AIRCRAFT AT KAI TAK TO BRING HOME TO THE CHINESE THE LACK OF SUBSTANCE IN THEIR CLAIM THAT DIFFICULTIES MUST ARISE IF KAI TAK IS USED BY. CAAC AND CAL.

CRADOCK

X

FILES

FED

HK & GD

MAED

MR MURRAY MISS BROWN

COPIES TO MR STEADMAN

CONFIDENTIAL

HER 184/1 CARROT

INDEX

No

.་.༣ tay NO. 51 - 4 JUL 1978

OFFICER

PA

: REC TRY

Action Teken

X