TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 105

548A

DESKEY 250038Z

CONFIDENTIAL

DESKBY 250030Z

CONFIDENTIAL

See 664

665

PA

HKK 184/1

RECEIVED IN REGISTRY KO. 51 2 7 NOV 1978

Blob

667

669

INDEX

(658

DESK OFFICIA

663,

RESTRY Action Tan

CLE

·

FM FCO 241829Z NOV 78

TO IMMEDIATE PEKING

TELEGRAM NUMBER 739 OF 24 NOVEMBER

INFO IMMEDIATE DE SKRY 250030Z HONGKONG.

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YOUR TELNO 824 AND HONGKONG TELNO 1351: AIR SERVICES.

1. WE WOULD PREFER TO DEAL WITH THE CHINESE REQUEST FOR NON-SCHEDULED FLIGHTS FROM CANTON TO HONGKONG WITHIN THE BROADER CONTEXT OF CHINA/ HONGKONG AND CHINA/UK AIR SERVICES. WE SEE THESE FLIGHTS AS AN I PORTANT ELEMENT IN THE DEVELOPING UK-CHINA-HONGKONG RELATIONSHIP AND WE ACCEPT THAT HONGKONG HAS A MAJOR INTEREST IN THE IR CONTINUA- TION. IN THE LAST RESORT WE WOULD BE PREPARED TO TOLERATE THE EX- CEPTIONAL CHARTER TERMS, BUT WE WOULD AIM TO MAKE A VIRTUE OUT OF WHAT IS A MAJOR CONCESSION IN AIR SERVICES TERMS AND PUT THE CHINESE ON NOTICE THAT IN RETURN FOR OUR COMPLIANCE WE LOOK FOR AN EARLY RESUMPTION OF REASONABLE DISCUSSIONS ON ASA.

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2. IN THESE CIRCUMSTANCES, AND SUBJECT TO CONCURRENCE FROM HONGKONG, YOU SHOULD SPEAK TO THE CHINESE AUTHORITIES ON THE FOLLOWING LINES: HMG HAS NOTED THE CHINESE REQUEST TO THE HONGKONG AUTHORITIES TO BEGIN A NEW SERIES OF CHARTER FLIGHTS FROM CANTON TO HONGKONG ON 1 DECEMBER. IN THE LIGHT OF THE FREQUENCY AND PROPOSED CONDITIONS ATTACHING TO THESE FLIGHTS, HMG REGARD THE SE, WHATEVER THEY ARE CALLED, AS IN PRACTICE, SCHEDULED SERVICES. THUS WE ARE PREPARED TO - ISSUE A 3 MONTH TEMPORARY OPERATING PERMIT ON THIS BASIS TO CAAC, THIS WILL MEAN THAT THE FLIGHTS CAN PROCEED FROM 1 DECEMBER WITHOUT EVEN THE MINOR ADVANCE BOOKING RESTRICTIONS THE CHINESE THEMSELVES PROPOSED.

3. IF THE CHINESE AUTHORITIES DO NOT WISH TO TREAT THE FLIGHTS AS SCHEDULED SERVICES, YOU SHOULD SAY THAT THE PROPOSED FREQUENCY AND CONDITIONS FOR THE FLIGHTS MAKE IT VERY DIFFICULT FOR THE UK AUTHORITIES TO TREAT THEM AS NON-SCHEDULED SERVICES. THE MOST FAVOURABLE ADVANCED BOOKING CONDITIONS WE HAVE WITH ANY OTHER COUNTRY

CONFIDENTIAL

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