TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 101

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CONFIDENTIAL

DESKBY 2509002 (FCO)

DESKBY 250600Z (PEKING)

FM HONG KONG 250515Z NOV 78

CONFIDENTIAL

See 66 PA Ra

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HKK 184/1

RECEIVED IN REGISTRY 10. 51 2 7 NOV 1978

TO IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE TELNO.1356 OF 25 NOVEMBER,

INFO IMMEDIATE PEKING.

ROUTINE HONG KONG GOVERNMENT OFFICE LONDON.

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YOUR TELNO.739 TO PEKING : AIR SERVICES.

DESK OFFICER INDEX

REC

PA

Action

en

1. I FEAR THAT THE NUANCES OF YOUR INSTRUCTIONS TO THE EMBASSY

IN YOUR TELNO.739 WILL BE VERY DIFFICULT TO PUT ACROSS AND WILL RISK BOTH MISUNDERSTANDING BY THE CHINESE AND COMPLICATING THE

ISSUE. MEANWHILE THE PRACTICAL PROBLEMS HERE REQUIRE AN URGENT

SOLUTION.

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2. HAD YOU WISHED TO MAKE SCHEDULED SERVICES, OR A LINK WITH THE

A.S.A, STICKING POINTS, THEN I ACCEPT THAT WE WOULD HAVE TO DEAL WITH THE PROBLEM AT THE EMBASSY LEVEL. HOWEVER, YOU ARE PREPARED TO CONCEDE THAT WE SHOULD AGREE EXCEPTIONALLY TO THE CHARTER

THAT BEING ARRANGEMENTS THE CHINESE HAVE PROPOSED IF THEY INSIST. SO, WE RISK LOSING ALL THE ADVANTAGES WE MIGHT HAVE ACHIEVED BY THIS CONCESSION IF WE PLAY THE GAME AS IN YOUR TEL UNDER REF. NOT ONLY DO WE WISH TO GAIN POSITIVE ADVANTAGES BY RESTORING NORMAL COMMUNICATIONS WITH CHINA, WE MUST NOT FORGET THE NEGATIVE

POINT THAT ALL CUR AIR SERVICES, WHICH HAVE TO OVERFLY CHINA'S TERRITORIAL WATERS, DEPEND ON CHINESE GOODWILL.

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3. WE HAVE THE CLEAR IMPRESSION THAT THE CHINESE WISH TO DEAL

WITH THESE FLIGHTS AS A LOCAL MATTER AND IN THE FORM, INITIALLY,

BOTH POINTS MAKE SENSE. OF NON-SCHEDULED FLIGHTS.

IT ENABLES

THEM TO AVOID THE ISSUE OF WHETHER FLIGHTS ARE INTERNATIONAL'',

IT ALSO AS IMPLIED BY AN AGREEMENT ON THE PEKING-LONDON LEVEL. AVOIDS THE PROBLEM OF STARTING SCHEDULED SERVICES TO KAI TAK WITHOUT ANY DECLARATION BY US ABOUT THE STATUS CF CAL.

CONFIDENTIAL

4. WE DO NOT