TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 102

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4. WE DO NOT SEE THAT AGREEING TO SPECIAL ARRANGEMENTS FOR NON-

SCHEDULED SERVICES FROM HERE TO CANTON SHOULD CAUSE YOU DIFFIC ELSEWHERE (YOUR PARA.3). HONG KONG'S CONDITIONS FOR NON-SCHEDULED

SERVICES ARE DECIDED LOCALLY WITHOUT REFERENCE TO THE U.K.

THEY

S

NEED NOT CREATE A PRECEDENT FOR THE U.K. IN ADDITION, RESTRICTIO ON ON-SCHEDULED SERVICES ARE NORMALLY DESIGNED TO PROTECT SCHEDULE SERVICES WHICH, IN THIS CASE, DO NOT EXIST. IT WILL BE WIDELY UNDERSTOOD AND APPRECIATED THAT SERVICES BETWEEN HONG KONG AND CHINA ARE EXCEPTIONAL AND SHOULD BE TREATED AS SUCH.

5. WOULD MUCH PREFER TO DEAL WITH THE MATTER HERE AND IN DIRECT I PROPOSE THAT WE RESPONSE TO THE APPLICATION MADE TO THE DCA. SHOULD NOW ACT AS FOLLOWS. THE DCA SHOULD TELL THE CHINESE THAT THEIR PROPOSAL CAME CLOSE TO AN ARRANGEMENT FOR SCHEDULED SERVICES WE HAD THEREFORE CONSULTED H.M.G. H.M.G WITH EXTREME RELUCTANCE HAD AGREED THAT THE FLIGHTS COULD BE DEALT WITH AS NON-SCHEDULED WE ARE THEREFORE PREPARED AND WITHIN THE COMPETENCE OF THE DCA.

TO APPROVE THEM FOR THREE MONTHS UNDER THE CONDITIONS PROPOSED BY THE CHINESE. BUT THIS WAS AN EXCEPTIONAL GESTURE OF GOODWILL WHICH WENT FURTHER THAN WOULD BE AGREED FOR ANY OTHER NON-SCHEDULED SERVICES. IT HAD IMPLICATIONS FOR GENERAL AIR SERVICES MATTERS BETWEEN THE U.K AND CHINA. THE EMBASSY IN PEKING WOULD BE TAKING THESE UP DIRECTLY WITH THE CHINESE GOVERNMENT.

6. GRATEFUL FOR URGENT CONFIRMATION THAT YOU AND PEKING AGREE

SINCE A RESPONSE TO THE CHINESE THAT WE SHOULD ACT IN THIS WAY.

IS NOW OVERDUE 1 WOULD LIKE THE DCA TO RESPOND TO THE CHINESE REQUEST TOMORROW.

7. WE WILL TELEGRAPH SEPARATELY ABOUT THE SUGGESTIONS ON AN A.S.A

IN YOUR TELNO.740.

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MACLEHOSE

FILES

FED

HK & GD

MAED

FS/LORD GORONWY ROBERTS

MR CORTAZZI

MR MURRAY

MISS BROWN

COPIES TO:

MR DARWIN, LEGAL ADVISERS

HONG KONG GOVT OFFICE, LONDON DOT/CAIR DIVN

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